Dominion moratorium fails

Dominion Finance has announced that its proposed moratorium has not been accepted by its trustee, Perpetual Trustees. This will impact about 13,000 investors owed about $275 million in the two finance companies in their group. Here is the full Statement.

The directors of Dominion Finance Holdings Limited (DFH) advise that the company presented final details for the company's proposed recapitalisation for consideration by the trustees for stockholders of Dominion Finance Group (DFG), and North South Finance (NSF). However the recapitalisation terms were not to the satisfaction of the trustees. Accordingly, the directors of DFH intend to promptly seek trustee approval to present stockholders and the group's banks with separate restructuring proposals for an orderly realisation of the assets of each of DFG and NSF. While the directors are disappointed that it will not be possible to pursue the recapitalisation proposal, the directors consider the orderly wind down to be the next best available option for DFH, in the circumstances. The restructuring will necessarily involve some immediate write-offs of goodwill and brand value in the company's financial statements. The directors are now moving to finalise the financial statements for each member of the group for lodgement with NZX and the Companies Office.