The notes remain a debt obligation but the company can always convert them to shares - they actually have no obligation, normally, to repay the $1.
We have had a miserable train of bad news since the issuance of the new notes. (NZF Money receivership, harsh terms for the sale of the RMBS operations, Liberty litigation).
Even Equitable is reporting a significant shortfall. I would have expected that business to be wound up at near break even.
About the only viable financial service businesses involve Kiwisaver or buying distressed debt, these days.
Do not consider my postings as investment advice. I am here to share research and to speculate on what might be. The boundary between fact and conjecture might not always be clear - best to treat all comments as speculation.
Has anyone investigated the current status of Mike Pero? How profitable it is now? and Is it producing enough profit for NZF to pay interest to NZF020 bond holders?
It looks that 80% of NZF Group's share in Mike pero Mortgage was sold to Resimac last Dcember.
No, NZF sold 80% of it's own homeloans division to Resimac. They maintain their 50% holding in Mike Pero (and proportionate holding in Real Estate).
Liberty and Resimac are competitors. Liberty has setup in competition to NZF/Resimac - this puts Mike Pero in a difficult position as the two principle shareholders are supplying competitive mortgage products.
It is such an Australian business practice to use the courts as a blunt instrument in commercial negotiation.
Do not consider my postings as investment advice. I am here to share research and to speculate on what might be. The boundary between fact and conjecture might not always be clear - best to treat all comments as speculation.
Spoke with an old mate who owns a Mike Pero franchise. He reckons that NZF are stuffed and that Liberty are likely to gobble up Mike Pero at some point. The Australian-Chinese guy at Liberty has a habit of getting what he wants.
Has anyone investigated the current status of Mike Pero? How profitable it is now? and Is it producing enough profit for NZF to pay interest to NZF020 bond holders?
They have paid this quarter's interest on the NZF020. We live another day.
While this could be the "final piece of bad news" - and we have had a long run of this; maybe we will be treated to news of another type that could support the view that not all is lost. I admit it is much easier to speculate on the negative.
Do not consider my postings as investment advice. I am here to share research and to speculate on what might be. The boundary between fact and conjecture might not always be clear - best to treat all comments as speculation.
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Originally Posted by Newman
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