Not sure what you mean invessi....
Unless NZF buys them back on the secondary market and cancels them, they remain an obligation for 18m - pesky indeed.....
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Not sure what you mean invessi....
Unless NZF buys them back on the secondary market and cancels them, they remain an obligation for 18m - pesky indeed.....
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.
It looks that 80% of NZF Group's share in Mike pero Mortgage was sold to Resimac last Dcember.
http://www.buyaproperty.net/liberty-...-mortgages-jv/
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?
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.
NZF Money's investors likely to receive 25c to 42c in the dollar
http://www.goodreturns.co.nz/article...he-dollar.html
Ah well, another finance company chapter closing - not too many to go now before the entire industry is gone for good......
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.