KEY POINTS:
Embattled lender Geneva Finance has been given a stay-of-execution from its investors at a special meeting in Auckland this afternoon.
Investors voted to give Geneva a six-month loan moratorium after they defaulted on debenture payments last month.
"This action was taken as part of a prudent strategy to strengthen the business and protect all investors interests," Geneva CEO said Shaun Riley said.
"The passing of the moratorium gives Geneva time to stabilise its investment position and business operations, generate cash reserves ...and secure the future of the company."
As part of the deal, Geneva will take on no new investments during the next six months.
Before today's meeting many investors remained reluctant to support the company, after their earlier debenture default.
"They're asking you to trust them again, after failing to do what their part of it should have been," said investor Peter Stubbs.
"I'm not sure it's on really.
"They should be something more in it than just getting your money back if you're lucky."
Other unlucky investors were hoping for better news ahead of the showdown.
One investor, who did not want to be named, told the Herald he would support a moratorium if it meant the company could be saved.
"I bet 90 per cent of these people will never invest in the finance industry again," he said.
The Consumer Institute has criticised the company for a lack of information supplied to investors heading into the meeting.
The institute was not invited to the meeting.
Geneva defaulted on debenture repayments last month and the rating agency Standard & Poor has decreased the company's rating to the default level of D, down from a B minus.
Ten finance companies have collapsed in the last 18 months.
- with NZPA
