FMA orders Geneva to stop issuing debentures
This is the first time the FMA has used this power and it says the breach means Bank of Scotland's lending facility is now payable on demand.
GFNZ, which is operating under a moritorium agreement with debenture holders agreed in November 2007 and revised in March last year, said it had asked BOS for a waiver and had prepared its accounts assuming the waiver will be granted.
The FMA says many of GFNZ's shareholders are former debt holders as a result of a debt-for-equity swap in March although GFNZ continues to raise money from the public through its May 12 prospectus.
"We believe our action is in the public interest because the prospectus relates to a continuous offer of debt securities," says FMA chief executive Sean Hughes.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[The Wrap] What the heck is happening at the FMA?](https://goodreturns.publit.io/file/c_fill,w_300,h_200/a6c3bc06-6401-44de-96e2-286c090e132d.jpg)