Mike Pero Mortgages sale heads to court

TIM HUNTER
Last updated 10:50 27/12/2012

Relevant offers

Industries

Augmented reality future, but not yet Media Take: Kiwis shouldn't be embarrassed about protesting - Miriama Kamo Tax cuts 'very important', but not top priority for most Kiwis Briscoe silent on Kathmandu, but says ASX listing would create 'opportunities' Is Steven Joyce's first Budget a family affair? Alex Swney, former high flyer now bankrupt, will live a 'downgraded' lifestyle on prison release Rocket Lab test launch postponed a second time NZ trade minister Todd McClay scores early invitation from US counterpart MYOB billboard gets 'f-word' makeover Mark Fields out at Ford; new CEO Jim Hackett known for turnarounds

A bitter scrap between the joint owners of mortgage broker Mike Pero Mortgages has escalated into legal action with millions of dollars at stake.

The two, listed company NZF Group and Australian lender Liberty Financial, agreed in September to end their relationship with Liberty buying out NZF.

But the deal was soon in doubt after an independent valuation of Mike Pero Mortgages said NZF's stake was worth just $2.8 million, well below its carrying value on NZF's balance sheet of $7.6m.

With the transaction requiring approval from NZF shareholders, Liberty has taken court action to promote a 'yes' vote.

In a statement published to the stock exchange this morning, NZF said "Liberty Financial has applied in the High Court to restrain information that NZF Group may provide to its shareholders in considering the sale and to compel the directors of NZF Group to make a positive recommendation to approve the sale."

Until the matter was heard in court in February next year, no vote could be held, it said.

The sale delay is another twist in the troubled life of NZF, whose assets remain frozen after legal action by receivers of its former finance company arm NZF Money, which collapsed in July last year owing debenture holders about $16.4m.

The High Court is due to hear proceedings in that case in February next year.

In March the Serious Fraud Office said it was investigating NZF Group over alleged related party transactions between members of the group, its directors and officers going back as far as 2006.

At its last balance date in September, NZF Group liabilities exceeded its assets by $5.5m.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content