Orange Finance in receivership
Doug Somer-Edgar's Orange Finance has entered receivership after a three-year moratorium failed to return the company to profitability.
According to the Companies Office Brendan Gibson and Grant Graham of KordaMentha were appointed to the struggling lender yesterday.
In August 2009 Orange debenture holders, initially owed $25.6 million, voted in favour of the company's moratorium plan to freeze their funds over immediate receivership.
The company has since revised the figure to $23m and repaid $12.7m to investors. Some $10.3m is still outstanding and only $6.8m in financial assets still on the books, including $6.2m in loans.
All outstanding loans are now considered by the company to be impaired, with $2.4m worth written off in the past year alone.
Somers-Edgar's company, Matrix Funding Group, has been managing the company through its moratorium, although Somers-Edgar has not been drawing director's fees, salaries or dividends.
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