NZF Group (NZF and NZF010)

[QOH]

Does anyone see the noteholders getting anything back?

[invessi]

Does anyone see the noteholders getting anything back?

I would think so, NZF are prudent lenders and I would expect they will recover most of their past due loans over time, if the relationship with the receivers remains friendly and the receiver see's value in having NXF handle the loans recovery, that will also help matters and don't forget that NZF have $10m of their own equity in NZFM. I recall that when Cleggs Finance went into receivership, Brian Clegg was retained by the reciever to recover loans and this produced a good result for the debenture holders.

[Tony Two Gloves]

Time to give those rose tinted glasses of yours a clean Invessi, how in any shape can you put a positive spin on this?

Buckles - the shares are worthless as they have been for most of this year, there is a buyer at 0.07 which looks a fair offer - who is going to go first. I can't see how Westpac will continue to support NZF after this fiasco. NZF keep going on about their lending team, what a joke they were doing deals nobody else would touch because of the juicy fee's - what a mistake. They now say we let the loans go into arrears..... were they telling customers not to pay? What a load of garbage, everyone needs to stop listening to NZF press releases and work off the facts provided by S&P and their annual report. As to the value of the Pero brand, $5 million - give me a break, this unit wasn't even profitable after fleecing all those poor franchisee's a value of $5 million is beyond absurd.

[QOH]

I would think so, NZF are prudent lenders and I would expect they will recover most of their past due loans over time, if the relationship with the receivers remains friendly and the receiver see's value in having NXF handle the loans recovery, that will also help matters and don't forget that NZF have $10m of their own equity in NZFM. I recall that when Cleggs Finance went into receivership, Brian Clegg was retained by the reciever to recover loans and this produced a good result for the debenture holders.

Thankyou for the opinion.

[Tony Two Gloves]

QOH - I wouldn't rely to much on that advice, the only saving grace is that you will rank ahead of shareholders if the group fails. They have not been prudent lenders - how can you say that Invessi? The receivers job will be to maximise returns for the debenture holders, I would doubt they well let NZF Group handle this, I believe most of their staff have been made redundant now anyway. If they make the call to fire sale the security properties or loan book than this will get ugly and the return to debenture holders will be not be close to 100%. As for NZF's $10M of equity you must remember this was not their idea it was forced upon them by FMA & Covenant, the equity will be of no concern for the receivers. In my opinion NZF Group should give serious consideration to de listing as I can see no reason why they would continue with the compliance costs when there is vitually no benefit to them - their brand, credibility and integrity have all been destroyed!

[Tony Two Gloves]

Nasty rumour of 45 - 60 cents in the dollar floating around - anyone heard anything concrete?

[QOH]

Nasty rumour of 45 - 60 cents in the dollar floating around - anyone heard anything concrete?

I haven't even heard anything from them to say they are in receivership! I'd be elated if it was 60 cents in the dollar.

[Tony Two Gloves]

Haha I bet you would QOH. The 45 - 60 cents in the dollar would be the amount the secured debenture holders would get back for every dollar they invested in Debenture Stock with NZF Money. I think you hold the NZF Notes which are not effected by the receivership of NZF Money apart from the very bad look this has for the group. This is obviously comes through to the current pricing on the notes which is a significant discount to the $1 value they originally had.

[QOH]

Haha I bet you would QOH. The 45 - 60 cents in the dollar would be the amount the secured debenture holders would get back for every dollar they invested in Debenture Stock with NZF Money. I think you hold the NZF Notes which are not effected by the receivership of NZF Money apart from the very bad look this has for the group. This is obviously comes through to the current pricing on the notes which is a significant discount to the $1 value they originally had.

Thanks Tony, that explains why I haven't heard anything. Does that mean I might still receive interest payments, or am I being too optimistic here?

[Enumerate]

Thanks Tony, that explains why I haven't heard anything. Does that mean I might still receive interest payments, or am I being too optimistic here?

If you are a NZF020 holder - the security for your Capital Notes is held by NZF Group. This entity owns investments in NZF Homeloans, Mike Pero Holdings, NZF Money and formerly Finance Direct.

Finance Direct has been sold and NZF Money has slipped into receivership.

The largest units of the group - Homeloans and Mike Pero are still trading and should still be profitable.

We are all waiting for a status update on the selldown of a majority stake in the NZF Homeloans unit. The money released in this sale was intended to be applied to cover debenture payouts in NZF Money - the lack of completion of this sale compromised the NZF Money repayments - hence, receivership for this unit.

So, the bottom line is that interest on your NZF020 is still due and it is probable that it will be paid (due to the cashflows from Homeloans).

However, we are all expecting some further announcement on the viability of the group following the loss of the NZF Money unit.