Sharechat Logo

Another finance company down

Tuesday 4th September 2007

Text too small?
LDC Finance, a small finance company with around 1000 investors, is the latest casualty in this sector.

Perpetual Trust Limited has appointed receivers to LDC Finance following a request from the company's directors.

LDC had $23 million in finance receivables.

"The appointment follows a request from the directors of LDC Finance for the company to be placed into receivership because of serious concerns as to the state of the debenture and funding markets and the ability of the company to obtain new funds and retain existing investments," Perpetual Trust chief executive Louise Edwards says.

"In particular over the past week, following the collapse of other finance companies, the company has experienced an unsustainable level of demand for repayment of on call deposits.

Edwards says the directors reluctantly concluded the company was unable to operate in the current market and these steps have been taken to protect all investors and to ensure all investors are treated fairly.

"The directors stress that this position has not been brought about through asset quality issues which might bring into question the ability of investors to recover all of their money, but rather liquidity issues affecting the wider finance company sector."

They expect that every secured debenture holder and depositor will be repaid in full. The receivers say that the repayment of all deposits have been frozen and the requirement of borrowers to continue to meet their installment and repayment obligations remains.

The receivers will consider selling the company, if that is not achieved then it is their intention to make quarterly distributions to the secured debenture stock holders. The unsecured depositors and unsecured creditors will only receive payments once the secured depositors have been paid their principal and interest in full.



  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:

KMD - 1H FY2024 Interim Results
SCT - Resignation of Chief Executive Officer
March 19th Morning Report
SKC - APPOINTMENT OF CHIEF INFORMATION OFFICER
NWF - Chief Executive Officer Warren Koia Resignation
March 18th Morning Report
Pacific Edge Directors Give Notice of Retirement
Meridian Energy monthly operating report for February 2024
Another unworkable farming rule bites the dust
March 14th Morning Report