Sharechat Logo

Capital + Merchant debenture holders may get just 8%

Friday 18th July 2008

Text too small?
Debenture holders in Capital & Merchant Finance will recover no more than 8% of their investment in the failed firm, less than originally estimated, according to receivers Grant Thornton.

"The poor quality lending, the deteriorating property market and lack of alternative credit" have hampered the ability of receivers to recover outstanding loans and assets, Thornton's Tim Downes and Richard Simpson said in a statement today.

The possible return is a fraction of the 14% to 59% recovery rate the receivers first estimated. Grant Thornton was appointed receiver last November by Fortress Credit Corp. Out of 55 loans with a book value of NZ$182.6 million, some NZ$42.8 has been realized, with NZ$13.4 million repaid to Fortress.

The receivers also said they are concerned about the appropriateness of some company transactions and would continue to probe these along with agencies such as the Securities Commission. Capital + Merchant was a lender mainly for property and property development.

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report