The second finance company to fall on its sword in as many weeks is Numeria Finance, which owes $6.4 million.
The small financier with 480 debenture holders and assets to the tune of around $7 million, is associated with Capital + Merchant Finance, which was put into receivershiptwo weeks ago.
Numeria Finance failed because of a lack of cashflow, the company's trustee Perpetual Trust said.
"It ran into a headwind with repayment of a couple of loans which led to the breach of its trust deed," the head of Perpetual corporate trust Matthew Lancaster told nzherald.co.nz
Mr Lancaster said Numeria hasn't been issuing securities to investors since September.
Numeria is the 10th financier to face difficulties this year, and the 14th in the past 19 months.
Capital + Merchant Finance Ltd and Capital + Merchant Investments' receivers Grant Thornton last month announced that the finance company was "signficantly constrained" in attracting new money while retaining current investments. Capital + Merchant owed about $200 million to investors.
TIMELINE - TROUBLED FINANCE INDUSTRY
2006
May
-National Finance 2000
June
-Provincial Finance
August
-Western Bay
2007
July
-Bridgecorp
August
-Nathans Finance
-Property Finance
-Five Star Consumer Finance
September
-LDC Finance Ltd
-Finance and Investments
October
-Clegg and Co Finance
-Beneficial Finance - halt on deposits and put moratorium on repaying debentures until March next year
-Geneva Finance - halt on deposits and put moratorium on repaying debentures until April next year. Owes north of $138 million to around 3000 investors
