Geneva gets a little ratings upgrade
S&P now rates GFNZ, formerly Geneva Finance, "CCC-" and says the outlook is negative. GFNZ's sister company Quest Insurance Group holds the same rating and outlook.
That's an upgrade from the "SD," or selective default rating S&P previously awarded it because of its debt-for-equity swap, the alternative to which was receivership.
Holders of $4.4 million of subordinated notes voted on March 31 to covert every $1,000 face value of their notes to 20,000 shares at an assumed five cents per share issue price. The noteholders were over a barrel because if GFNZ had gone into receivership, they would have received nothing.
The NZX-listed GFNZ shares ended last week at 1.6 cents.
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