NZF Group (NZF and NZF010)

[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!

[Jay]

3 billion? hmmm.....

[Enumerate]

I would point out that the company is still worth something ... say, $10M ...

The issue is that the shareholders will be diluted by the converting noteholders -OR- there will be a messy liquidation in which the noteholders recover alot less than $10M for the $18M of notes.

[Enumerate]

Which is obviously why they are attempting to negotiate with the Trustee to establish a negotiated price for the equity conversion.

If the notes convert to equity ... the remnant asset values are in the range of $5-10M + a few M ca$h

Do the noteholders want an ordered transition to ownership of these assets? Would they prefer to take a haircut and maintain the subordinated debt position? The notes are clearly not worthless ... the issue is: "do you restructure with the potential to restore to higher value" or "do you go into effective liquidation with no prospect of recovery"?

[Tony Two Gloves]

Well they are worthless compared to their $1 face value. This will not be a haircut, this is a fully shaven job.

I know Enumerate you were a keen buyer at 1.9 cents but although you justified it I thought you ignored the mounting bad news, NZF had no future then and it is looking even bleaker now.

[Tony Two Gloves]

There is hardly any room left on this coffin lid to bang any more nails in.......

5 April 2012 NZF Group Limited (NZF) - announces receipt of notice of proceedings NZF announces The Company has been notified by the receivers of NZF Money Limited that they intend to file proceedings against NZF and certain past and present directors who were directors as at 20 October 2010 of NZF Group. The proceedings relate to an internal restructuring of NZF Homeloans Limited in October 2010 which is alleged to be an insolvent transaction. The receivers have also applied for a freezing order over the assets of NZF Group. A hearing date has not yet been set. The proceedings will be rigorously defended.

[Xerof]

LOL TTG, and I suspect the 'discussions' with the Trustee regarding bond interest/conversion to equity will have just taken a turn for the worse as well. Looks like a messy liquidation comin' up

[Tony Two Gloves]

Yes indeed, probably the last thing Peter Huljich needs also as he was a director in October 2010 (along with Waddel, Callaghan, Redpath, Sclater and current MD Mark Thornton).

Where oh where has Invessi gone, I would love to see him put a positive spin on all this.....

[invessi]

Yes indeed, probably the last thing Peter Huljich needs also as he was a director in October 2010 (along with Waddel, Callaghan, Redpath, Sclater and current MD Mark Thornton).

Where oh where has Invessi gone, I would love to see him put a positive spin on all this.....

Watching and waiting, could go either way I imagine!