KEY POINTS:
Some investors in Geneva Finance have wasted little time deciding what to do with their first payout from the troubled company - put it straight back in again.
Geneva has emerged from its moratorium to make its first payout of 15 per cent of debenture holders' investments, and has noted with satisfaction that some debenture holders chose to reinvest NZ$1.1 million out of the NZ$14.8 million returned. The money was reinvested with an average term of 17 months.
Geneva Finance's debenture holders voted 94 per cent in favour of a debt for equity swap in late April to recapitalise the consumer finance firm after a funding squeeze forced it into a moratorium in early November.
CEO Shaun Riley said the reinvestment rate far exceeded his expectations. "It is also a gratifying outcome for our investment team, led by Investment Manager Kruger Venter, which worked hard on investor communications through the moratorium period," Riley said.
The moratorium route has proved more popular for troubled finance companies in recent months. Proposals from Geneva Finance and MFS Pacific were successful with investors, although Lombard's initial attempt to propose a moratorium failed and Belgrave Finance only briefly considered a moratorium.
- INTEREST.CO.NZ
