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Shares in vending machine franchise company VTL Group plunged 90 per cent yesterday after an eight-week trading halt was lifted after market close on Thursday.
VTL shares resumed trading yesterday at 70c. However, shares quickly fell to under 5c and recovered only slightly to finish the day at 6.5c.
Troubles at VTL began with the company's insolvency after the failure of subsidiary Nathans Finance in August.
In a market update this week, VTL said it would report a significant "but as yet unquantifiable" loss for the year ended August 31 and would be unable to meet stock exchange and shareholder reporting requirements.
Last month the VTL's directors announced a funding deal which allowed the company to continue trading. VTL also revealed it had reached agreement with Nathans Finance receivers - John Waller and Colin McCloy of Pricewaterhouse Coopers - to sell the firm's businesses as a going concern in a controlled manner to preserve the value for all stakeholders.
The company said this week that it was in the process of identifying buyers for the assets of Nathans Finance and its franchise business.
VTL-owned Chancery Finance - which had stopped issuing bonds last year but still had $17 million to $18 million outstanding as of August - had suspended interest and principal payments to bondholders.
