Geneva considers its future - again

O'Connell said winding down the business in order to meet the payment to BOS International by its due date would have "damaged the business' operational capability and put full repayment of principal and interest to debenture holders, BOS, and sub note investors at risk."

Geneva reached agreement with its banker, BOS International, that its current $35 million facility would be reduced to $30 million at the end of March and continue to fall by $5 million lots every six months until March 31 2015, when it would be zero.

Last month the first finance company to go into a moratorium announced its future was uncertain after its wholesale funder warned it was unlikely to extend its $35 million facility with Geneva beyond the end of April. As at September 30, the finance company had drawn down some $26.8 million from the facility.