KEY POINTS:
Dominion Finance Holdings subsidiary North South Finance appears likely to avoid receivership and gain the green light for a "supervised workout" of its loan book.
A source close to the affair said North South was close to gaining approval for "a workout that gives the trustees the supervision they are looking for while keeping costs low to improve returns to investors".
An announcement was likely this week. Should North South's trustee, Graham Miller of Covenant Trust, accept the proposal, it then goes to an investor vote.
North South, with its book of mostly first mortgages, has a better-quality loan book than sister company Dominion Finance Group which has many second and subsequent mortgages. Between them, the two companies owe 13,000 investors about $276 million. Dominion Finance Group trustee Louise Edwards of Perpetual Trust yesterday said talks with management were continuing.
Meanwhile, Hanover Finance looks likely to present its repayment plan to investors by the end of this month.
A spokesman said the plan was "progressing very well" with management working closely with shareholders Eric Watson and Mark Hotchin, the company's trustee and advisers PricewaterhouseCoopers.
PWC was now finalising its report to the trustee and a definitive timeline for presentation of the proposal to investors was likely to be finalised within the next two days.
