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Shares in newly listed Geneva Finance traded for the first time yesterday, closing at 13c and giving the company a market value of just under $10 million.
Under the finance company's restructuring plan, 15 per cent of the company's $98.42 million in debenture holders' funds and 55 per cent of $11.5 million in note holders' funds were converted into new shares at a rate of one share for 36.49c.
That figure was arrived at on the basis of the company's net asset backing at May 1 this year which valued the company at about $28 million.
At last night's closing price, each dollar debenture holders had invested in Geneva was now worth a little over 90c, the figure for note holders was just under 65c.
Under Geneva's plan, debenture holders will continue to receive interest on the unconverted portion of their principle until it is repaid in instalments over the next four and a half years. Note holders will be repaid over five and half years.
While Geneva's shares were untraded when they made their debut on the NZAX alternative market on Tuesday, 175,000 changed hands yesterday, beginning with a small trade at 15c each.