NZF withdraws prospectus after loan problem, FMA concerns
The company is "working through various options to address the impact of this delay on its projected cashflow," it said.
The company later clarified that it had actually voluntarily withdrawn its prospectus on Monday, July 18 following discussions with the Financial Markets Authority (FMA). It had been discussing amendments which would be acceptable to the FMA but since being advised of the delayed sale had decided not to proceed with the amendment, NZF said.
NZF Money's prospectus was last updated on June 30. It showed total loans and advances to customers at June 24 fell to $29 million, of which 78.69% was secured by first registered mortgages, from $34 million at March 17, 81.39% of which was secured by first registered mortgages.
Of those loans, $19 million had been purposely allowed to fall past due so the company could "keep its options open, improve its ability to renegotiate revised lending terms and conditions and to control the sale and recovery process where necessary." Loan impairments at June 24 were $3.7 million with a further $2 million of impairments possible, the prospectus said.
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