Commission says company must tell both sides of story

The Commission believes that the advertisements were likely to mislead investors about the relative advantages and disadvantages of the proposal as compared with the alternative option of receivership and did not comply with the law.

PFSL has been advertising its proposed restructure in roadshow presentations to investors and in briefing notes published on its website.

PFSL is a finance company that has been in moratorium since December 2007. Before then it had been in receivership since August 2007.

In a statement the Commission said that it understands PFSL had been developing a proposal to restructure its moratorium since failing to meet a scheduled payment in December 2008. Its proposal involves varying the terms of the existing securities held by debenture holders, which amounts to a new offer of securities under the securities law.