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January 30, 2008 |
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PROPERTYFINANCE: Lender Cannot Give Aid; Seeks Other Options Propertyfinance Group Limited disclosed that the lender of the bridging facility, from which the Group will draw down NZ$710,000 to inject into subsidiary Propertyfinance Securities Limited, cannot advance financial assistance. According to the Group, the lender is one of those affected by the challenges and uncertainties in both the domestic and international financial markets. The board of directors cannot yet tell whether this will be a temporary issue of a few days or develop into a permanent position. The Group's shareholders last month agreed to retire the receiver of PFSL, which went into receivership in August 2007, after certain conditions are met, a filing with the New Zealand Stock Exchange relates. The company was able to meet the conditions, allowing a settlement to occur. The last step of the restructuring process should have been the injection of NZ$710,000 into the unit. The Group, while apologizing for the continued period of uncertainty to investors, says it will continue to work with the trustee and receiver to consider both the situation and any other options that may be available. Headquartered in Christchurch, New Zealand, PropertyFinance Group Ltd, formerly Avon Investments Limited, through its subsidiaries, is engaged in lending on first mortgage and is also involved in property-related financial services. As reported by the Troubled Company Reporter-Asia Pacific on Aug. 27, 2007, PropertyFinance Group's board of directors is looking into a number of restructuring opportunities because of concerns on the company's ability to manage its current liquidity position. The company believes its problem with liquidity arose from a timing mismatch between its assets and liabilities. The Group owns a number of subsidiary companies, the principal subsidiary of which is Propertyfinance Securities Limited. PFSL was placed in receivership by Covenant Trustee Company Limited at the request of PFSL's directors on Aug. 29, 2007. Grant Graham and Brendon Gibson of Ferrier Hodgson were appointed as receivers. At the time of the receivership PFSL had total assets of NZ$92 million (un-audited) and liabilities of some NZ$82 million (un-audited). |
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