Stewart Lockhart of Covenant Trustee Co.
An investor has raised concerns about consumer finance company Beneficial Finance after he claims it failed to make an interest payment to him.
But the company says it has not missed any payments and is not in breach of any requirements under its trust deed or moratorium.
Beneficial
Finance was one of the first finance companies to go into a moratorium approved by its debenture holders in October 2007.
At the time it held $24.2 million of investors' funds.
The 18-month repayment plan promised investors they would receive all interest paid in quarterly instalments as well as a partial repayment of their principal. Retired investor Michael Murphy, who lives in Australia, said he had been receiving payments from the company without any issue until his debenture investment matured on December 15.
The principal was then reinvested as part of the moratorium proposal and the interest due on it was also re-invested - a move that Murphy said was not part of the plan.
"I was a bit irate with them - no way would I want to put good money after bad."
Murphy said he contacted Beneficial but was told because there were still two weeks in the quarter after his investment matured, the principal and interest had to be rolled over.
"I could find no mention of this in the moratorium document."
Beneficial chairman Mervyn Oldham said it had made all its payments of principal and interest in the 15 months to December 31.
"Beneficial is fully compliant with its trust deed and moratorium approved by its investors on the October 8, 2007."
Oldham said all payments were approved by its independent monitor.
"This is the first and only complaint of this nature that directors have received during the 15-month moratorium period."
Stewart Lockhart, a director of Covenant Trustee - the trustee company for Beneficial Finance - said a number of investors had requested their interest payment be reinvested.
He was not aware of any investors who had missed out on their interest payment when requested to receive it. If interest had been withheld it could be a breach of the trust deed of the finance company and investors should contact him if they could not resolve it.
