Capital + Merchant debenture holders may get just 8%

"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

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.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

Delegat Group Limited (NZX: DGL) $333 million syndicated bank facilities
7th December 2021 Morning Report
Sky Network Television Limited (NZX: SKY) Transformation accelerates - Sky raises FY22 guidance
PGG Wrightson Limited (NZX: PGW) FY22 Operating EBITDA forecast to better last year
Vulcan Steel Limited (NZX: VSL) Trading Update & Earnings Upgrade
6th December 2021 Morning Report
Synlait Milk Limited (NZX: SML) Partnership to enhance soil health; test regen ag practices
Property for Industry Limited (NZX: PFI) Strong Valuation Outcome, Penrose Acquisition
3rd December 2021 Morning Report
Fonterra Shareholders Fund (NZX: FSF) Fonterra provides Milk Price, earnings and Q1 update