Orange Finance moratorium ends in receivership
Orange Finance, the lender owned by Doug Somers-Edgar and managed by his Matrix Funding Group, has been sent to receivers after its three-and-a-half year moratorium on interest payments drew to a close with 72 cents in the dollar of principal repaid.
Covenant Trustee Co appointed Brendon Gibson and Grant Graham of KordaMentha to squeeze any remaining value out of Orange's loan book yesterday, according to Companies Office documents. The finance company previously indicated receivership was pending when the deferred repayment plan ended on July 31.
Covenant managing director Graham Miller told BusinessDesk that achieving repayments of 72 cents was "outstanding for any of the mortgage-based finance companies" that used moratoria arrangements when the market soured.
"We're optimistic it will go above 80 cents (in the dollar) before this is done," he said.
Orange froze repayments to some 2,500 investors owed $25.6 million in late 2008 before convincing debenture holders to agree to a moratorium on redemptions and interest payments until the end of July 2011. That deadline was later pushed out another year with trustee Covenant's approval.
As at its March 31 balance date, the lender had repaid $12.7 million and reduced its liability by $2.4 million in a debt restructure. It repaid a further $1 million in April.
Orange's carrying value of loans and advances was $6.2 million at the end of its financial year, with 80 percent concentrated in hotel and residential property.
Comments from our readers
No comments yet
Add your comment:
NZ dollar heads for 1.4 percent weekly gain vs. A$ on divergent economies; US jobs data loom
FMA almost done in settlement with Strategic Finance directors, receiver chasing BDO
Supreme Court tosses out Gull appeal over $23 mln butane blending duty
Bank of New York Mellon trims holding in embattled Chorus
Chatham Rock granted mining permit for Chatham rise, still needs EPA sign-off
NZ govt operating deficit smaller than forecast on higher personal tax take, customs duties
Regulator seeks industry views on Chorus line price, suggests speedier process, backdating final price
RBNZ commitment to inflation target crucial for believable guidance, Bascand says
While you were sleeping Strong US GDP, jobs
NZ dollar holds near 5-year high vs. Australian dollar on interest rate paths