Wednesday 10th September 2008 |
Text too small? |
Covenant Trustee Co. agreed to allow debenture holders of North South to consider a wind down plan after talks with ASB and BOS International who together control about as third of the debentures.
"We have received advice that indicates that an orderly supervised wind down has potential to produce a better outcome for debenture holders than receivership," Covenant said in a statement.
The trustee agreed to the plan on the condition it is supervised by insolvency specialists Korda Mentha. Covenant's statement comes after Dominion Finance's biggest unit, Dominion Finance Group, was placed in receivership by Perpetual Trust.
The ailing firm had been trying to negotiate repayments by installment after liquidity dried up. The company froze a total $276 million of debenture funds in June.
The shares of Dominion Finance Holdings last traded at 2 cents and have lost almost 100% of their value in the past year.
More than 20 finance companies have either failed or sought moratoriums in the past two years as the global credit squeeze and waning investor confidence made it harder to maintain enough funds to make payments to debenture and note holders.
No comments yet
SPG - Change to Executive Team
BGI - Forgiveness of $200,000 of secured indebtedness
General Capital Subsidiary General Finance Market Update
AFT,Massey Ventures,Gilles McIndoe to develop scar treatmen
April 24th Morning Report
Cheers to many fewer grape harvest spills
GTK - Half-Year Results Announcement Date
Government ends war on farming
Sky and BBC Studios renew expanded, multi-year agreement
AOF - Q1 Improved Trading Performance & FY24 Guidance Maintained