Clegg and Co latest failure
More bad news has been delivered to fixed interest investors just when the finance company sector and credit markets looked to be settling down.
Friday, October 5th 2007, 5:11AM
Last night it was announced that Auckland based Clegg and Co was the latest finance company to be put into receivership.
Covenant Trustee Co ordered the receivership after Clegg and Co directors and shareholders were unable to rectify the breach of the company's related party loan restriction clause.
"The level of provisioning required against this related party debt means that Clegg & Co Finance has minimal if any residual shareholders funds," Covenant managing director Graham Miller says.
On top of that the receivers of Five Star Consumer Finance provided some grim news for debenture holders.
They say that returns to investors are likely to be somewhere between 26 and 40c for every dollar invested.
Added to this they say there are some complex and unusual loans and some matters are being referred to the "appropriate government authorities".
The third bit of bad news delivered yesterday was that investors with money in the NZDX-listed PINs funds, which are managed by Absolute Capital in Sydney, are unlikely to see their interest payments this quarter.
The positive side to this story is that the notes have capital protection which is unaffected and missed interest payments should be made up as the investments mature.
Full details of all these stories are in depositrates.co.nz. Use the links below to read more.
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