KEY POINTS:
Allied Nationwide Finance has joined the string of finance companies reassuring the Securities Commission that their financial position is no worse for wear.
The commission wrote to all 69 finance companies on August 24 asking them to confirm they were financially fit.
All but Five Star Consumer Finance, now in receivership, complied.
Allied's directors said they knew of no reason why the company would be materially adversely affected in terms of trading, profitability, or ability to pay its debts.
This had been the case, they said, since June 29 when the company registered its prospectus for secured debenture stock.
The company said its financial position, liquidity and asset quality had also not materially adversely changed since its most recent financial statements.
It added that with the collapse of a number of finance companies recently, it was keeping a close eye on its investments in case it had to issue an amended prospectus or stop taking deposits.
It was aware that "any significant downturn in the level of new investments and re-investments could have a negative effect on the company within the next 12 months".
The company is a recent amalgamation of NZX-listed Allied Farmer's finance arm with Nationwide Finance, which Allied bought from Hanover Group earlier this year.
At the time the merged entity was said to have more than $300 million in assets and around $36 million in equity.
New rules surrounding the level of disclosure in the non-bank financial sector are due to come into effect in December.
The investment market is calling for compulsory credit ratings and some supervision to lift failing confidence in finance companies.
- NZPA
