KEY POINTS:
Christchurch-based Property Finance Group's March year net loss has widened to $6.56 million from the $3.54 million initially reported in April and the company, which dragged itself out of receivership in February, remains "fragile".
The larger loss was disclosed in PFG's annual report which was finally released to the market yesterday after weeks of delays that saw the company's shares suspended by market operator NZX.
Its subsidiary Property Finance Securities, which owes 4000 debenture investors about $83 million, called in the receivers in August last year when PFG's mortgage securitisation programme was derailed by the credit crunch, leaving the finance company operation unable to meet repayments.
However the group began trading again in February following a capital injection.
It is now effectively in a management-led wind-down process with investors scheduled to receive annual repayments of principal over the next three years. In its annual report PFG said that despite its restructuring, "the effects of this receivership, when combined with the well reported market disruptions within the finance and property sector, both within New Zealand and internationally, has left the company in a fragile state".
Repayments to investors are dependent on ongoing income from PFG's $630 million worth of mortgage-backed securities on issue which are independently managed by four trusts.
PFG told the market in recent weeks delays in releasing its annual report related to a lack of information from third parties.
PFG shares closed untraded at 10c yesterday.
