Receivers appointed to Finance and Leasing Ltd
Receivers have been appointed for Finance and Leasing Ltd, affecting 227 debenture holders with a total $17 million invested that is not covered by the Crown retail deposit guarantee scheme.
Receivers have been appointed for Finance and Leasing Ltd, affecting 227 debenture holders with a total $17 million invested that is not covered by the Crown retail deposit guarantee scheme.
Brett Chambers and Paul Munro, of Deloitte, were appointed receivers by Perpetual Trust, the trustee.
Perpetual Trust spokesman Matthew Lancaster said the appointment was made following a request from the directors after the company breached a capital ratio covenant required by new Reserve Bank of New Zealand (RBNZ) regulations for finance companies.
"While the capital ratio requirement, which came into force on December 1, 2010, was advised some time ago, Finance and Leasing has been unable to re-gear its balance sheet sufficiently in the time available to meet the covenant on a consistent basis," Mr Lancaster said.
The company has applied to the RBNZ for dispensation but that would have taken three months to process, and in the meantime the Companies Office was unwilling to approve the company's prospectus.
Without a registered prospectus, the company was unable to trade as a finance company.
The receivers have started their assessment and will endeavour to report to debenture holders as soon as possible.
NZPA
Thu, 20 Jan 2011
Thu, 20 Jan 2011
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Receivers appointed to Finance and Leasing Ltd
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