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
- Government edges towards review of low-user electricity tariff
- Aussie Rich List – where are the Kiwis?
- Top lawyer on gardening leave after 22 years at Russell McVeagh
- How much taxpayers are giving to parties for political ads
- Trilogy meets guidance with 19% gain in full-year earnings, cites raw material costs
Most listened to
- It’s "odd" StuffMe applicants are "so sensitive about anonymous submissions," says competition lawyer Andy Glenie
- Andrew Little, James Shaw, Steven Joyce and Bill English all weigh in on how good the budget was for Kiwi businesses
- Rob Hosking does not think it's good enough the Budget has left out reduced taxation on savings
- Lawyers are playing musical chairs in this week's Briefcase with John Bowie
- NBR Radio: best of the week ended May 26, with Grant Walker