Consumer lender Geneva Finance, which was the first major finance company to successfully recapitalise after a moratorium, has announced it will review its loan portfolio because of a deterioration in market conditions. "The Board's particular concern relates to the increased costs of living being absorbed by it's customers, especially food and petrol price increases over the last six months and the risk this raises in regard to asset quality, particularly of the older historical loans," Geneva said in a statement to the NZX. "It is expected that it will take three to four weeks before this review is completed and the outcome known. At that time the Board will be in a position to advise the company's profit forecast," it said. Debenture investors in Geneva voted 94% in favour of a plan to swap 15% of their NZ$98.4 million in debt for shares in Geneva that were listed on the NZX, with the remaining 85% to be repaid over the following 4 and a half years. The shares were issued at 36.5 cents per share. The shares debuted at around 13 cents a share in July and last traded at 9 cents a share. Geneva is being closely watched by other finance companies thinking of agreeing to moratoriums and capital restructures rather than receivership.
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