ANZ returns from ProvencoCadmus receivership slow to a trickle; Loss from NZ$23.8mln exposure tipped

By Gareth Vaughan

ANZ's returns from the ProvencoCadmus receivership have slowed to a trickle, with just NZ$100,000 clawed back by receiver KordaMentha in the period covered by its latest report.

The report from KordaMentha's Michael Stiassny and Brendon Gibson reiterates that ANZ faces a "significant" shortfall.  It notes that ANZ was owed NZ$23.8 million at the time of KordaMentha's appointment on August 3, 2009 and has so far been reimbursed to the tune of NZ$8.85 million.

In a high profile demise, ANZ pulled the plug on the sharemarket listed eftpos product provider ProvencoCadmus after it tried unsuccessfully to secure funding from its major shareholders Todd Capital and Navman founder Peter Maire.

At the time of the receivership ProvencoCadmus chairman Rick Christie blamed an unsustainable debt burden, sluggish investment and product markets, and a weaker-than-expected trading performance.

The group was created through the May 2008 merger of Provenco and Cadmus who both counted ANZ as their bank. The ProvencoCadmus group included seven subsidiaries and provided electronic payment services and point of sale equipment both in New Zealand and overseas. KordaMentha has sold ProvencoCadmus'  payments business to SmartPay for NZ$6 million and retail oil business to Fusion Retail Oil for an undisclosed sum.

Stiassny and Gibson's second receiver's report noted a NZ$5.75 million distrubution to ANZ, the third one a NZ$3 million distribution, and this latest and fourth report just NZ$100,000.

"At the date of our appointment the Group was indebted to the Bank for NZ$23.8 million," the receivers say. "As at the date of this report, a distribution of NZ$8.85 million has been made to the Bank."

"It is evident that there will be a significant shortfall to the Bank."

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