Investors approve North South moratorium

Investors have approved a moratorium proposal for North South Finance by an 83 per cent majority at an investor meeting.

Investors should get an initial payout of 5c in the dollar this year. Whether they will see the rest of their principal returned will depend on the property market, according to a report in The National Business Review.

North South owes $102.3 million capital to investors, including $33.3m to its bankers. Interest owing of $4.4m is unlikely to be returned.

Parent company Dominion Finance Holdings (DFH) appointed voluntary administrators in October after its main finance company subsidiary Dominion Finance Group was placed in receivership by Perpetual Trust.

A meeting of DFH creditors is expected to be held in the New Year.

- NZPA