PVO, Provenco/Cadmus. Whats the story about this 'investment'?

[krusty]

Should I consider this a learning experiance along with DFH? What happened to the assets as no debenture holders were in the que?

[Stumpynuts]

Should I consider this a learning experiance along with DFH? What happened to the assets as no debenture holders were in the que?

ProvencoCadmus went bellyup, as they couldn't repay their debts. They were quickly acquired by Smartpay and the company is now trading as SmartpayCadmus (NZX-SPY)

My personal opinion is that this company is starting to have a very promising future, but it is a long term stock. I reckon around about 8 years (for no apparent reason other than it's a long time) is long enough........

[Lizard]

You can read the most recent receivers report at the companies office:
http://www.business.govt.nz/companies/app/ui/pages/companies/36824/documents

Receivers say there isn't enough to pay the bank (secured), let alone other creditors. Put it down to experience...

SPY only acquired a portion of the assets, defined as the "payments business".

[krusty]

Thanks Lizard. Wasn't Todd a big investor, wonder if they did any better?

[percy]

Thanks Lizard. Wasn't Todd a big investor, wonder if they did any better?

Yes they lost more than us.

[krusty]

If you beleive anything the media says, the rich are getting richer during this down turn. Think the Todd Family is probably in that camp. It wouldnt surprise if they came out of it with something the rest of us didn't get.

[Dr_Who]

Alot of the so called "smart" money got napalmed in this financial crisis. Pvo reminded me of the dotcom days pre 1997.

[krusty]

At least PVO was producing something not just floating a daydream.

[manxman]

Alot of the so called "smart" money got napalmed in this financial crisis. Pvo reminded me of the dotcom days pre 1997.

Wasn't Singapore Telecom a substantial shareholder in Cadmus? They must have had a good story to tell.

[Dr_Who]

Wasn't Singapore Telecom a substantial shareholder in Cadmus? They must have had a good story to tell.

Shareholders include Todd Capital (19.46%), Peter Maire (6.2%), Stephen Tindall and Alan Hubbard. They went down on something like $45 million debt.

[moimoi]

$26.8M to ANZ according to receivers report subsequently reduced by $5.75M after distribution.

Maire will have done fine..he picked up the oil retail assets for nix.

Has it been disclosed where SPY got the funding for the purchase of the PVO payments asset.?

[Lizard]

Yes - there is a varied consortium of lenders to SPY listed in the Annual Report. Most at rates of 14-17.95% and many of them associated with shareholders or (former) directors. Most of it matures on 30 September.

[Dr_Who]

Chosing to listen to experienced players and smart money got alot of investors burnt in PVO. A lesson to be learnt here when listening to the so called experienced analyst.