Property Finance seeks receivership injunction

Listed Propertyfinance Group's principal subsidiary Propertyfinance Securities (PFS) has applied for a High Court injunction to temporarily halt its trustee Covenant Trustee Company from being able to appoint receivers.

The injunction is being sought until PFS can hold a previously announced special meeting of stockholders.

Managing director Darryl Queen said PFS directors, supported by the trustee's independent expert, were strongly of the view that receivership provided no better result for PFS's stockholders than a revised moratorium being put to stockholders for approval.

The directors strongly believed it was a fundamental principle that stockholders should ultimately make the decision whether or not to approve a revised moratorium, Queen said.

For both commercial and legal reasons the company was unable to comment further.

PFS was previously placed in receivership in August 2007 and removed six months later. It has been in moratorium since December 2007.

The Securities Commission announced on Monday it had banned advertisements by PFS for a proposed restructure of its moratorium arrangements.

PFS has been advertising its proposed restructure in roadshow presentations to investors and in briefing notes published on its website.

The commission said it believed the roadshow presentations were likely to mislead investors because they set out only the positive aspects of the restructure proposal, and only the negative aspects of the receivership option.

PFS said it had received legal advice on the presentation and believed the contents to be true and accurate, but its directors respected the views and findings of the commission.

- NZPA