NZF Group (NZF and NZF010)

[Enumerate]

Looks like it is more misery ... the SFO announces investigation into NZF Money.

[Xerof]

E, I'd read the announcement when I put up my comment, so it wasn't an uninformed guess. The investigation is wider than NZF Money, and regardless of the outcome of the investigation, IMO, this is the final nail. Supporters will be ducking for cover, calling force majeure and generally doing anything they can to distance themselves and their money from this outfit. KM's mandate will be widened imminently I would hazard to guess.....

[Lizard]

Ah well, another finance company chapter closing - not too many to go now before the entire industry is gone for good......

In respectful interest, are you encompassing HNZ and F&P Finance in that prediction?

[Xerof]

F&P have stuck to their knitting in the consumer finance space, and I don't see any issues there
HNZ need to try harder to become a registered bank - they are still a finance company, with similar lending profiles to most of those that have failed - that needs to be worked through, and IMO will take years to sort out

my comment on 'entire' industry was targeted at those mezzanine lenders who lost their way in the property development sector, and were ravaged by related party lending - HNZ appear to have avoided significant volumes of this activity, so may be spared. They do need to sort out ownership/control issues. My thoughts on this are well documented

[QOH]

Can anyone please tell me, are the NZF020's classified as debentures or are they buried somewhere else in the company?
Would just like to know if they are worthless, which appears to be almost the case, looking at what they are being sold for.

[Lizard]

Thanks Xerof. Have very much appreciated all your insights on the industry. You have been proved correct many times.

[Tony Two Gloves]

I think this whole thing makes a mockery of NZF's "We're Different" slogan, in fact they have removed it from there website home page. They are no different and as a few of us have been saying they never were any different from all the other poorly run / managed failed finance companies. No matter how much you go on about experienced lending staff, management with 130 years experience etc the fact of the matter as they were doing loans nobody else would and that has come back to bite them! The only difference was they had a bit of cash when things turned south and were able to survive longer than most - luck not skill kept them alive. Now we see a potential small payout to debenture holders, unsecured creditors losing everything and on top of that an extremely over valued loan book (surprise surprise) and now rampant related party lending - what difference??
I personaly believe the note holders will lose everything as eventually the interest on these notes will become untenable. It is almost impossible for shareholders to exit and who would be brave enough to buy at any price. If they cashed up their assets they would still be at least 3 - 4 Million upside down which I guess is why the SP is where it is.
I don't think the SFO would launch an enquiry if they did not have good grounds to no matter what Mark Thornton tells the Herald, still with only 28 loans it shouldn't take to long to check. I believe some of the directors where heavily envoved in property development a few years back so I guess this is what the SFO will be looking at....

[Newman]

I personaly believe the note holders will lose everything as eventually the interest on these notes will become untenable. It is almost impossible for shareholders to exit and who would be brave enough to buy at any price. If they cashed up their assets they would still be at least 3 - 4 Million upside down which I guess is why the SP is where it is.

For NZF020 holders, the questions are: what assets NZF still have? and how much do they worth if they can be sold? Can 20% share holding in Home Loan division be sold to Resimac? Can the 50-50 JV Mike Pero Mortgates be sold?

The interest payment for NZF020 holders is $1.08 m per year. The last trading of NZF020 suggests that the buyer believed that NZF would pay interest for at least one year from now. I suppose NZF cannot convert NZF020 into shares before its maturity date (2016).

[Newman]

I personaly believe the note holders will lose everything as eventually the interest on these notes will become untenable. It is almost impossible for shareholders to exit and who would be brave enough to buy at any price. If they cashed up their assets they would still be at least 3 - 4 Million upside down which I guess is why the SP is where it is.will be looking at....

Vote No on NZF's proposal to convert NZF020 notes to shares and put NZF into receivership would result in a return of a few cents per dollar to noteholders. The shares would be no value at all. Refer to announcement below.


NZF
26/03/2012 16:46
S/HOLDER

REL: 1646 HRS NZF Group Limited

S/HOLDER: NZF: NZF Group Limited (NZF) - Market information

NZF

MARKET INFORMATION

26 March 2012

NZF Group Limited (NZF) - announces it is in discussions with the trustee to
review interest payment on Capital Notes (NZF 020)

?NZF announces that while the Company has an excess of liabilities (including
the capital Notes) over assets of circa $4m, it has sufficient cash to pay
interest on the notes for at least the next 18 months if the Company made no
new investments. Regarding the notes, the Company has started discussions
with the trustee (Perpetual Trust Limited) regarding the payment of interest
and a conversion to equity, and whether a proposal will be put to
shareholders and note holders in the coming months. In addition, NZF does not
expect that sufficient cash reserves will be generated between now and
maturity of the notes in 2016 to fully redeem them for cash, meaning that the
notes will convert to equity.

ENDS

[Tony Two Gloves]

Hehe yes how many shares would be issued to convert $18M of notes at a VWAP of around 0.006 a share, my calculator won't do it!!

Have said all along the notes are worthless.......come on Invessi lets see you put a positive spin on this!