Receivership seen for Orange Finance
Orange Finance, the finance company owned by Doug Somers-Edgar, is expected to end its three-year moratorium by falling into receivership at the end of the month.
Somers-Edgar made the statement in Orange's latest financial accounts, saying the company believed its trustee, Covenant, would appoint receivers to realise its remaining assets on July 31.
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.
Since then the company had revised the figure to $23m and repaid $12.7m to investors, with $10.3m still outstanding and only $6.8m in financial assets still on the books, including $6.2m tied up in loans.
All outstanding loans are now considered to be impaired by the company, with $2.4m-worth written off in the past year alone.
''Since 31 March 2012 the market in which the company operates has not improved,'' the accounts stated.
''This is putting continuous pressure on asset values and making it more difficult to exit loans and advances. As a result of this and due to the inherent uncertainty of predicting future events, the director cannot state with absolute certainty that the company's asset values will not deteriorate further.''
Orange's annual loss for 2012 was $1m, down from $3m in 2011.
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.
Matrix charged management fees of $247,400 for the year, down from $324,000 the previous year.
Somers-Edgar is a former owner of Money Managers whose investors lost $59.7m in 2008 on car financing loans.