Geneva Finance to lose its wholesale funding

Geneva Finance was the first finance company to go into a moratorium and since then has listed on the NZX and repaid debenture holders 50% of their principal.

Managing director David O'Connell said "funding is now the key issue" for the company in its report for the six months through September, after BOS International said the current $35 million facility is unlikely to be "extended in full" beyond April 30.

O'Connell said while the discussions with its lender are "commercially sensitive," it is appropriate to disclose that the facility as being due in six months. As at September 30, Geneva had drawn down some $26.8 million from the facility.

"Successfully resolving the funding issues creates the opportunity to significantly enhance shareholder value," O'Connell said in his report. "Changes to financial markets on both the global stage and within New Zealand have made it difficult to secure long-term funding."