NZF Group recommends liquidation

JOHN ANTHONY
Last updated 18:09 03/04/2014

Relevant offers

Industries

'Silly' to suggest Xero has endorsed Trump administration, says CEO Rod Drury Sharp fall in Wellington building consents in November, due to quake Creating a new destination for cruise ships in Bluff Privacy Commissioner 'names and shames' photo firm over privacy breach Former Saatchi chair Kevin Roberts speaks about the words that cost him his job Aussie company Volley cops a serve from Christian lobby for using sex to sell tennis shoes Wine lovers from 20 countries heading to capital to celebrate Kiwi pinot noir Pot for pooches? Medical cannabis being used to treat doggy anxiety Cambridge University wants a Lego professor of play Greens call for Simon Bridges to explain delays to UFB negotiations

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.


Ad Feedback

- BusinessDay

Special offers

Featured Promotions

Sponsored Content