NZF Group (NZF and NZF010)

[Steve]

I wonder what levels of guarantees etc (if any) NZF has provided to its Finance Subsidiary that may now be called up by the Receivers? Potentially, this could be the end for NZF as a whole...

[buckles]

I wonder what levels of guarantees etc (if any) NZF has provided to its Finance Subsidiary that may now be called up by the Receivers? Potentially, this could be the end for NZF as a whole...

Yes, what are the implications of this for NZF parent? I'm worried about my shares....

[minimoke]

Yes, what are the implications of this for NZF parent? I'm worried about my shares....

The prognosis is unlikely to be good. But then again it hasn't been for a very very long time. At the moment your shares are worthless as there are no "buy" bids. So its time to think about your exit strategy. Do you accept the next bid offer that is raised, no matter what loss you're going to take. Or do you reread Enumerates analysis and hold on for that spectacular change.

[invessi]

Buckles, maybe this will help to answer your question!

NZF
25/07/2011 12:21
GENERAL

REL: 1221 HRS NZF Group Limited

GENERAL: NZF: NZF Group Limited (NZF) - Continuous Disclosure

Further to recent market announcements, NZF today advises that Brendon James
Gibson and Grant Robert Graham of KordaMentha, Chartered Accountants, have
been appointed jointly and severally to be receivers and managers of the
property charged under the Debenture Stock Trust Deed dated 21 October 1999
between NZF Money Limited (NZFML) and Covenant Trustee Company Limited, as
Trustee for secured debenture stockholders.

The Board, management and staff of NZFML are fully co-operating and providing
assistance to KordaMentha, Chartered Accountants, in order to enable them to
carry out their duties effectively as receivers of NZFML. Investors
requiring further information concerning the status of their investments are
directed to the KordaMentha website www.kordamentha.com, who can also be
contacted at the following address:

KordaMentha (NZ)
Level 16, Tower Centre,
45 Queen Street
Auckland 1010
New Zealand

PO Box 982
Auckland 1140
New Zealand

Tel: +64 9 307 7865
Fax: +64 9 377 7794
Email: nz@kordamentha.com

The Board of NZF is currently considering the financial impact that the
receivership of NZFML has on the operations of the NZF Group of Companies. A
further announcement will be made regarding this in due course.

In the meantime, the Board of NZF would like to reassure NZF's shareholders
and its Homeloan mortgage customers and broker channel, that the receivership
of NZFML has no direct impact on the operations of NZF's profitable Homeloans
Division.

In addition, the Board of NZF would like to reassure NZF's shareholders that
the receivership of NZFML also has no direct impact on NZF's 50% strategic
investment in MPMH Limited (Mike Pero Mortgages).

ENDS
End CA:00211611 For:NZF Type:GENERAL Time:2011-07-25 12:21:46

Yes, what are the implications of this for NZF parent? I'm worried about my shares....

[minimoke]

Buckles, maybe this will help to answer your question!

go to www.nzf.co.nz and click on the "investors" tab. It takes you to the Korda Mentha website. If that fill shareholders with confidence, good on ya!

If you read teh Annul a report ot says"On 10 June 2011, NZF Group limited entered into exclusive due diligence with an Australian private company over a staged period. It is expected that the party will support the home loan activities. the Australian partner which will have a majority stake in NZF’s home loan division and is vastly experienced in the Australian RmBS market and will add significantly to the current operations of this division." What do you reckon the chances of that deal going ahead?

[invessi]

We should know that this week, I would say that the chances of it happening are still quite good, there are advantages to both parties for this to happen and if Westpac are still supporting it, and I see no reason why not, (because NZF have proven to them that they are good operators in this space) it should be a win win for all three entities. They have been flagging for some time as have S&P that the finance company had past due and liquidity problems and I think NZF were driven to try and keep the finance company going out of a sense of public image and the interests of the company and the investors, NZF still have a fair chunk of their own equity in the finance company and it remains to be seen what they might get back. I think they have a chance to repay all investors and get cash out for themselves because it has already been flagged that they will be cooperating and working closely with the receivers, this should produce the best possible outcome and take the heat off the group!

go to www.nzf.co.nz and click on the "investors" tab. It takes you to the Korda Mentha website. If that fill shareholders with confidence, good on ya!

If you read teh Annul a report ot says"On 10 June 2011, NZF Group limited entered into exclusive due diligence with an Australian private company over a staged period. It is expected that the party will support the home loan activities. the Australian partner which will have a majority stake in NZF’s home loan division and is vastly experienced in the Australian RmBS market and will add significantly to the current operations of this division." What do you reckon the chances of that deal going ahead?

[invessi]

Minimoke, notice issued yesterday by NZF to originators, hope it makes you and TTG feel a bit better!

By now many of you would have caught up with our recent news and market announcements that NZF Money Limited has gone into receivership.

Your clients Home Loan is with NZF Mortgages Limited and the service provider being NZF HomeLoans Limited. This part of the business is as they say “Business as Usual”.
Our home loans lending operations and funding facilities with Westpac Institutional Banking all remain in place and are unaffected by this development.

Further to our NZX market announcement of 10 June 2011, we continue to work with an Australian private company and remain confident that we can form a joint venture focused on Home Loan activities in the near future. As apart of this process, discussion has already begun around the introduction of a new brand name which will be announced in due course.

In the meantime, I have attached a copy of a letter that we will be forwarding to your clients.

So for now – It’s Business as Usual.

go to www.nzf.co.nz and click on the "investors" tab. It takes you to the Korda Mentha website. If that fill shareholders with confidence, good on ya!

If you read teh Annul a report ot says"On 10 June 2011, NZF Group limited entered into exclusive due diligence with an Australian private company over a staged period. It is expected that the party will support the home loan activities. the Australian partner which will have a majority stake in NZF’s home loan division and is vastly experienced in the Australian RmBS market and will add significantly to the current operations of this division." What do you reckon the chances of that deal going ahead?

[minimoke]

Minimoke, notice issued yesterday by NZF to originators, hope it makes you and TTG feel a bit better!

The words that don't fill me with confidence are "remain confident". How many times have investors hears those platitudes from their companies only to be left high and dry. I much prefer words of completed action like "we have agreed...."

[invessi]

The words that don't fill me with confidence are "remain confident". How many times have investors hears those platitudes from their companies only to be left high and dry. I much prefer words of completed action like "we have agreed...."

Minimoke, (and TTG) don't you think a bit of good faith is in order.......

NZF home loan deal still on: Thornton

NZF Group's deal with the unnamed Australian private company which is expected to take a majority stake in NZF's home loans division should still proceed despite the group's subsidiary NZF Money going into receivership last week, says chief executive Mark Thornton.
Tuesday, July 26th 2011, 3:00PM
by Jenny Ruth

"As late as today (Tuesday), we have confirmation that the proposed transaction with the Australian investor should take place as that business is not linked to NZF Money," Thornton says.

"The receivership does not have any effect on the rest of the group apart from some brand damage I suspect," he says.

NZF continues to own its home loans division and 50% of the Mike Pero Mortgages franchise group, both of which are profitable.

Managing NZF Money "has been a very big challenge since the massive run off in debentures leading up to the expiry of the government guarantee last October," Thornton says.

Since then, the company had been very reliant on loan repayments to meet maturing debentures "which, of course, were not assisted by negative downgrades from S&P (international ratings agency Standard & Poor's)."

S&P rightly pointed to NZF Money's low reinvestment rates but that “to a degree became self fulfilling,” he says.

Heading into receivership, NZF Money owed debenture holders about $18 million. That's a long way from the $63.8 million it owed debenture holders at March 31, 2010.

The finance company's last prospectus update on June 30 also showed it still had equity of $10 million, although past due loans were $19 million.

Thornton says it's too early to comment on the likely return to debenture holders but that the $19 million in loans were deliberately allowed to become past due so NZF Money could be in a position to force repayment.

[minimoke]

Minimoke, (and TTG) don't you think a bit of good faith is in order.......

Frankly, No. I saw so much money poured into Hanover / ALF on blind faith and SCF on good faith that there is no room for faith in my investment portfolio. Jeez - you'll be having the boys at NZF doing financial programmes on the radio on Sunday mornings next!