NZF Group fails to get quorum at noteholders' meeting
By Paul McBeth
Aug. 7 (BusinessDesk) - NZF Group has delayed a special meeting of noteholders for a fortnight after failing to raise a
quorum today.
The Auckland-based financial services firm's board sought to liquidate the company earlier this year, and was blocked
when a major noteholder asked for a special meeting to try and squeeze more value from the firm. Investors holding about
24.1 percent attended today's meeting, falling short of the 25 percent required for a quorum, and the event has been
adjourned for 14 working days, NZF said in a statement.
Nessock Custodians Ltd, which held more than 10 percent of the NZF's $18 million in capital notes, is asking noteholders
to delay liquidation until the end of August to try and find more value in the business, limit NZF's expenses to $50,000
a month until Sept. 30, while granting directors a further $50,000 to look at a transaction to boost NZF's value, and
hold another meeting in September to make a final decision.
NZF's board didn't make a recommendation on the resolutions.
The NZDX-listed notes, paying annual interest of 6 percent, last traded in June last year at a yield of 260 percent.
NZF's shares last traded at 1 cent, valuing the firm at $1.1 million.
The firm's board has suspended all action to wind up NZF until the special meeting has been held, and expects to call
the meeting within five weeks.
In April, NZF's board decided to liquidate the firm after the resignation of auditor RSM Prince scuttled a deal for a
major restructure and was unable to find a replacement.
The extended lifeline means NZF will have to complete and file audited financial statements for the 2014 financial year,
and it has hired accountancy firm William Buck Christmas Gouwland to do so.
In November the regulatory arm of stock exchange operator NZX fined NZF Group $35,000 and censured the company after a
delay in filing its 2013 annual report, which saw trading in the shares suspended.
At the time NZF Group said it was unable to fully value its divestment in its 50 percent stake in MPMH, a holding
company for Mike Pero Mortgages, as it no longer had access to the financial statements.
(BusinessDesk)