Sharechat Logo

Geneva Finance noteholders agree to share exchange

Friday 1st April 2011 1 Comment

Text too small?

Geneva Finance subordinated noteholders voted 79.5% in favour of a resolution to exchange the notes for ordinary shares in the company.

An expert opinion from Northington Partners said the transaction would effectively result in the conversion of $4.44 million of sub-note principal into new equity capital with the same value.

Since a capital reconstruction proposal was approved a year ago, Geneva had been unable to raise additional equity funding, the opinion said.

Before yesterday's vote, Geneva had been in a position where it believed there was a significant risk that it would breach a minimum regulatory capital adequacy ratio of 8%, and that the likely consequence of that would be that the trustee would appoint a receiver.

The move to exchange notes for shares was one of two main capital-raising mechanisms, Geneva was proposing to lift its capital position above a 10% guideline minimum, the opinion said.

Another resolution, passed by 92% of shareholders, agreed to the issue of shares to holders of debenture stock, on application from each debenture stock holder and in exchange for all or part of the instalment of that stock.

 

NZPA



  General Finance Advertising    

Comments from our readers

On 3 April 2011 at 1:37 pm Ivan Turk said:
Geneva rips-off it's investors again. Still, their investors are stupid for going for it. Now they can have a whole lot of useless and worthless shares in exchange for their money.
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:

28th October 2021 Morning Report
Wellington Drive Technologies Limited (NZX: WDT) Performs Strongly in Q3-2021
Ryman Healthcare Limited (NZX: RYM) Acquires Extensions to Two Existing Victorian Sites
Promisia Healthcare Limited (NZX: PHL) Banking Covenant Update
Pictor Limited Announces Start of US Clinical Trials for SARS-CoV-2 Serology Test
Arvida Group Limited (NZX: ARV) Opening of Rights Offer
Move Logistics Group Limited (NZX: MOV) Announces $40m Capital Raise
27th October 2021 Morning Report
The a2 Milk Company Limited (NZX: ATM) Investor Day 2021
Contact Energy Limited (NZX: CEN) Considers Green Capital Bond Offer