Six-year moratorium about to end for Geneva
One of the first finance companies to go into a moratorium is about to exit that state.
Tuesday, July 16th 2013, 9:11PM
Listed company GFNZ Group, formerly known as Geneva Finance, has completed negotiations for a series of funding transactions that will allow it to exit its six-year old moratorium.
The deals will generate $27.5 million, and these funds, in conjunction with cash on hand will allow the repayment of all exiting outstanding debt facilities, including all public debenture holders, its banking facility with BOS International and the professional funding raised in June 12, August 12 and January 13.
There are three elements to the transformation.
Westpac have approved a $30m securitised debt facility that will be used to fund the “new business” receivables.
A group of professional investors, including two non-executive directors will provide a $5 million debt facility to fund the operations of Stellar Collections Ltd, the group’s debt collections business.
Thirdly major shareholder Federal Pacific Group, which owns 33% of the company, has committed to provide a $5 million unsecured loan to the Group’s parent company, GFNZ Group .
GFNZ says that as on August 1 all outstanding debt with public debenture holders, BOS International and the professional investor funding will be repaid.
Once these payments have been made, Geneva will formally exit the moratorium entered into on November 5, 2007.
“Achieving the goal of exiting moratorium is very satisfying, and a testament to the determination and hard work of the Geneva board and management team,” managing director David O’Connell says.
Following the transactions, which all require shareholder approval, the group will be formally restructured into the four trading entities which will further improve transparency of reporting.
Since November 2007, inclusive of this payment Geneva will have repaid a total of $169m of principal and interest to investors including $107.4m to public debenture holders who received at an average rate of 11.1%.
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