Money Managers’ First Step clients have seen their investments take another misstep with Structured Finance’s halt on repayments yesterday.
Financial Trust, which invested First Step funds as trustee for the First Step trusts, holds the vast majority of outstanding Structured Finance debenture stock.
The spokesman for First Step’s trustee Calibre, Edward Russell, confirms that about $30 million is owed to the funds.
The last First Step accounts – which predicted a nearly $100 million shortfall to investors – did not make any provisions for losses on the investment.
Financial Trust’s debenture holding came about as the result of a deal struck in 2007, giving the Trust $100 million debenture stock in lieu of repayment of a debt owed by Structured Finance.
Structured Finance’s latest prospectus states that the remaining debt to Financial Trust was extended three times and was due to mature on June 19 this year.
Structured Finance has a number of connections with Money Managers – its debentures were sold through the advisory chain.
Director Martin Reesby also runs another finance company, Fidelity, alongside New Zealand Funds Management directors and Money Managers shareholders Gerald Siddall and Russell Tills.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Knewe Biosystems founder Dr Graeme Coles discusses the future of his product
- Media Snapchat: NBR’s Nick Grant ponders the Human Rights Commission’s role in RHOAKL racism row
- Craigs' Mark Lister on good equities returns for the September quarter to date
- BNZ's Kymberly Martin and Massey University's David Tripe on mortgage rates.
- 'It had become far too complicated so we threw it all out the window' – Jane Wrightson on NZOA's new funding model