Eftpos company Provenco Cadmus in receivership

Photo / Kenny Rodger

Eftpos company ProvencoCadmus has gone into receivership.

An announcement has just been made from receivership company KordaMentha that Michael Stiassny and Brendon Gibson have been appointed receivers.

The company's shares have been in a trading halt since this morning.

Stiassny said while they have been appointed receivers to ProvencoCadmus, its subsidiary companies have not been placed into receivership.

"Provenco is a well known New Zealand business with a long trading history and we certainly hope we can find a new owner," he said.

"We are currently assessing the situation and working to ensure there will be no disruption to normal service."

He said ProvencoCadmus customers wanting more information should make enquiries "via their normal business channels."

The directors of the company asked ANZ National Bank to appoint receivers because the company will not have sufficient funds to meet its working capital requirements.

"An unsustainable debt burden, sluggish investment and product markets and a weaker than expected trading performance has combined to stop the company from achieving the strategic objectives set by the board," chairman Rick Christie said.

It was the company's hope and expectation that the business could continue to trade in the interests of staff, suppliers, creditors and suppliers, he said.

The underlying trading business was fundamentally sound and capable of generating good returns in the future, said Christie.

On Friday, ProvencoCadmus said it continued to face risk and uncertainty with its forecast cash flows.

Some of the largest shareholders had declined to fund further working capital, but other shareholders and broader restructuring avenues were still being pursued.

Its shares, which traded as high as NZ$1.17 in February 2007, changed hands at 3.5 cents on Friday, rounding out a week-long 54 per cent slide.

ProvencoCadmus counts Todd Capital, Stephen Tindall and Alan Hubbard among its investors, according to its annual report. The company's chief executive and chief financial officer have departed this year.

A slump in demand for its systems from retailers, in the wake of global recession, has forced the company to sell assets over the past 12 months while negotiating with its banks.

KordMentha is having a media conference at 4.30pm today.

-NZ HERALD STAFF/BUSINESSWIRE/NZPA