KEY POINTS:
The stock exchange yesterday agreed to lift the share trading suspension of Canterbury finance company Propertyfinance Group, despite its major trading arm being in receivership.
Chairman Barney Sundstrum requested the lifting at Monday's annual shareholder meeting in Christchurch.
NZAX-listed Propertyfinance shares, held by about 400 shareholders, were suspended on August 24 at the company's request five days before Propertyfinance Securities was placed in receivership.
Propertyfinance shares last traded at $1.10 on August 22, valuing the company at $15 million.
The company has to pay a $67,000 quarterly interest payment on $3.7 million of preference shares on September 30 and said it was attempting to arrange funding for that.
If it can't obtain the funding, it will be in breach of its obligations.
The board will be trimmed with Mark Bellas, Leigh Davis and Denis Hazlett resigning, leaving Sundstrum, chief executive Darryl Queen and Peter Taylor.
Sundstrum said it was impossible to provide the market with any earnings-based guidance on value.
He said the board did not believe PFS's assets had been impaired as a result of the liquidity problems that led to the receivership.
However, further adjustments to the group's net tangible assets in light of the receivership "may be necessary and indeed are likely".
- NZPA
