KEY POINTS:
Investors in troubled finance firm Geneva Finance have voted for a capital reconstruction plan to get the company back on its feet.
Geneva froze repayments for six months in November after defaulting on debenture payments and winning a debt moratorium from investors.
The plan will repay investors with interest and convert a proportion of debenture and subordinated note holdings into shares.
Bank of Scotland, which is owed $43 million, will be repaid $8m over five months to September, with the balance to be rescheduled as a term loan.
Geneva said the percentage of votes was 93.5 per cent in favour, despite a last-minute expression of interest by Bluestone Capital Management.
Chief executive Shaun Riley thanked investors, Geneva's trustee, and Bank of Scotland (BOS) for their support of the company.
"The company remains operational and continues to lend following the stabilisation and consolidation that took place during the six-month moratorium period.
"This period allowed Geneva to generate a $26 million cash reserve, and the final step of gaining investor approval for our proposal for capital reconstruction has put the company in a strong and stable position."
Bank of Scotland will retain a $35 million funding facility for a further three-year term.
Geneva has applied to list on the NZAX, at which time 15 per cent of debenture-holders and 55 per cent of subordinated note-holders' investments will be converted into ordinary shares .
Forty per cent of the outstanding debenture principal will be repaid with interest over 11 months from May.
- NZPA
