Orange Finance, the lender owned by Doug Somers-Edgar and managed by his Matrix Funding Group, expects receivers will be appointed at the end of the month when its three-and-a-half year moratorium draws to a close.
The Auckland-based finance company's freeze on the remaining $11.3 million of debenture stock comes to an end on July 31, and "it is expected that a receiver will be appointed by the trustee to realise any remaining assets of the company", Orange said in financial statements lodged with the Companies Office.
As at the March 31 balance date, the lender had repaid $12.7 million and reduced its liability by $2.4 million in a debt restructure. It repaid a further $1 million in April. That implies the lender has some $633,000 in cash and equivalents.
The use of deferred repayment plans by a slew of finance companies including the likes of Hanover Finance and Strategic Finance prompted the government to introduced tougher disclosure rules for moratoria and increased trustee supervision.
The proposals were characterised as "usually the slow-death of the company rather than the quick death of the company", by Jane Diplock, the former chair of the now-defunct Securities Commission.