The board of listed financial services firm NZF Group has recommended to shareholders that the company be liquidated following uncertainties with appointing an auditor.
NZF Group was frozen in 2012 after receivers of its failed finance company subsidiary, NZF Money, filed a claim against it.
The legal dispute was resolved early last year, when it agreed to pay almost $1 million to settle the claim.
NZF Money collapsed in July 2011 owing debenture holders $16.4m.
Several weeks ago RSM Prince resigned as auditors of NZF meaning the board had to find a new auditor while on the cusp of entering into a substantial restructuring proposal a few weeks before the end of the financial year.
The board said it had discussions with a ‘‘significant number’’ of audit firms, however, all but one had refused to be engaged.
It said the failure of NZF’s finance company operations, the associated litigation and regulatory investigations associated with that failure and the inability of NZF to repay the capital notes in full led to discussions to wind down the business.
Based on these factors the board drew a number of conclusions which, if correct, would lead to the recommendation to shareholders that NZF be liquidated.
Further information about the proposed wind down would be circulated to shareholders.
Because NZF had negative equity the market was cautioned that its shares currently had no value and if the liquidation was approved, no prospect of having value.