Rates Round Up

Propertyfinance Group in the dark on recoverability of outstanding loans
Propertyfinance Group, the parent of propertyfinance securities Ltd., will not know the recoverability of its outstanding debtors and debt notes "for a number of years".

The finance company posted a $19.9 million loss for the year ended March 31, as its revenue slumped 31%, including some $16.6 million of impaired assets.

PFG held a second moratorium meeting last month after its subsidiary, which owes around $79 million to investors, failed to meet a $15.5 million payment in full. As a result of the meeting, $12.3 million of interest was forgiven, but the extra income will not be accounted for until next financial year.

Interest payments on Fidelity bonds deferred again
Interest payments on Fidelity Guaranteed Capital Bonds, the NZX-listed security, have been deferred until at least January next year after it again failed to meet the threshold required to pay its 9.25% coupon.