KEY POINTS:
Geneva Finance says it is carrying out a full review of its loan portfolio in response to continuing deterioration in market conditions.
The finance company said today that its particular concern related to the increased costs of living being absorbed by its customers, especially food and petrol price increases during the past six months and the risk that raised for asset quality, particularly of older historical loans.
The review was expected to take three to four weeks. When it was completed the board would be in a position to give the company's profit forecast, Geneva said.
In April, investors voted for a capital reconstruction plan to get the company back on its feet after Geneva defaulted on debenture payments in November and then put in place a debt moratorium.
Under a restructuring plan investors are being repaid with interest, while a proportion of debenture and subordinated note holdings were converted into shares.
- NZPA
