Dominion Finance in liquidation

Dominion Finance Holdings (DFH) has been placed into liquidation in line with a recommendation from the administrators appointed to the company.

The decision was made at a watershed meeting of creditors held yesterday in Auckland.

DFH is a holding company that no longer trades. Its main subsidiaries are property finance companies Dominion Finance Group (DFG) and North South Finance (NSF).

DFH is listed on the sharemarket, with trading in its securities suspended in October following the appointment of John Cregten and Andrew McKay of Corporate Finance Ltd as administrators.

At the time of the appointment, the DFH board passed a resolution that in its opinion the company was insolvent or may become insolvent.

Of DFH's two main subsidiaries, DFG was placed in receivership last September, while NSF has a debt moratorium in place approved by stockholders two months ago.

In a report last month the DFH administrators said they did not foresee any improvement in the financial position of DFH given the financial position of its subsidiaries.

Because of uncertainty about the ultimate realisation values of the limited assets to hand, it was not possible to determine the extent of the shortfall to unsecured creditors yet.

McKay and Cregten were appointed as liquidators of DFH.

- NZPA

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