Thursday 24th July 2008 |
Text too small? |
"The investigation is into whether Hanover Finance breached the Fair Trading Act by making misleading representations to prospective investors and/or the public generally," the regulator said in a statement posted on its website. It declined to make further comment.
Hanover also stopped accepting new investments yesterday as it worked with trustees on a plan to restructuring plan. The firm is meeting its Trust Deed obligations and has the financial capacity to trade but is acting early to preserve value in the business.
"Against a backdrop of global credit uncertainties, falling property prices and lower reinvestment rates, the industry model has collapsed," shareholder Mark Hotchin told goodreturns.co.nz yesterday.
Hotchin and Watson have pledged to support Hanover, he said.
The suspensions also apply to investments with Hanover Finance subsidiary United Finance Limited, and sister company Hanover Capital Limited.
The Hanover Finance book comprises approximately 13,000 investors with $465 million in debentures. United Finance has around 2,400 investors with $65 million in debentures. And Hanover Capital, offering secured preferential bonds, has around 1,100 investors with $24 million of bonds.
No comments yet
SPG - Change to Executive Team
BGI - Forgiveness of $200,000 of secured indebtedness
General Capital Subsidiary General Finance Market Update
AFT,Massey Ventures,Gilles McIndoe to develop scar treatmen
April 24th Morning Report
Cheers to many fewer grape harvest spills
GTK - Half-Year Results Announcement Date
Government ends war on farming
Sky and BBC Studios renew expanded, multi-year agreement
AOF - Q1 Improved Trading Performance & FY24 Guidance Maintained