KEY POINTS:
Financially troubled MFS Pacific Finance is to receive around A$10 million ($11.5 million) in cash back from an inter-party related loan but has still not reached an agreement over how much it will get from the proceeds of the Stella Group majority stake sale.
Australian company MFS, which owns 38.5 per cent of MFS Pacific Finance's parent MFS New Zealand, announced on Monday it had sold its investment in Gersh Investment Partners and A$20 million would be paid to MFS and MFS Pacific Finance.
MFS spokesman John Hurst said MFS Pacific Finance would get back roughly half of the A$20 million once the transaction was completed in mid-April.
But Hurst said it was still in talks over how much of the proceeds from the Stella sale would go to MFS Pacific Finance as part of an initial payment.
MFS New Zealand has a put option agreement with MFS which means the Australian company is liable for the overdue debts of its subsidiary.
MFS Pacific Finance defaulted on $27 million in debenture payments due in January and has told its 12,000 debenture holders it plans to hold a moratorium to take a vote on the more than $330 million in debenture investments it has.
Sale of the 65 per cent stake of the Stella tourism business to CVC Asia Pacific was completed on Friday when the company received A$409.2 million.
MFS has already paid back a A$200 million loan to Fortress Credit Corporation and has said it is now focused on paying back other short-term debt.
Over the last week MFS has also finalised the sale of Sydney's Park Hyatt Hotel for A$201.6 million and its Domain Aged Care business for a profit of A$43.5 million.
