Freezing order on NZF Group assets relaxed by court

BUSINESSDESK: The High Court has relaxed a freezing order over NZF Group's assets as the troubled financial services firm battles with the receiver of its failed lending unit.

Judge Rodney Hansen granted NZF Group's application giving it access to cash reserves with seeking the receiver's consent, which will let it meet permitted expenses provided those reserves do not fall below $1.3 million, the firm said in a statement.

"The difficulties of managing the business of NZF Group with the freezing orders in place were highlighted to the court," it said.

"The judgment also noted the significant level of costs being incurred by NZF Group in order to defend the receiver's proceeding."

In April, KordaMentha, the receiver for NZF Money, filed proceedings against the parent and its directors, who presided over a restructure in 2010 as it sought to claw back funds for investors owed about $16.4 million.

It had previously won an extension on the freezing order, saying there was a risk the $3 million cash buffer may vanish before NZF Money could make a claim.

NZF Group is also subject to a Serious Fraud Office investigation relating to transactions dating back to 2006.

The shares last traded on May 15 at 0.3 cents apiece, valuing the firm at just $330,000.
 

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