Secured debenture investors in failed Nathans Finance will have to wait longer than hoped for to get their first payout.
Nathans was put in receivership last August. It is a subsidiary of listed VTL Group which owns vending machine-related business units which operate in this country Australia, NorthAmerica and Europe.
In their latest update on Nathans, receivers Colin McCloy and John Waller said Nathans had provided $171 million of debt to VTL, parties associated with it and various VTL franchises.
Since the receivership, the receivers had continued to provide funding to VTL to enable it to trade pending the sale and restructure of its business units.
Previously the receivers had hoped the sale of the 24seven Australasia and 24seven US business units would be completed during the first quarter of 2008, the receivers said.
Had that happened they had hoped to be able to pay an initial dividend of 10c to 15c in the dollar.
But the sales had taken longer than expected, although both were at an advanced stage and should be finished early in the second quarter.
Following that they expected to be able to pay an initial dividend, the amount of which would be decided when the sales processes were completed.
The receivers also commented on VTL's recently reported loss of $133m for the 14 months to the end of August.
"The magnitude of the loss is of serious concern and is the subject of a thorough investigation by the receivers.
"Already a number of matters have come to our attention which are being investigated and which will be referred to the appropriate government authorities if necessary," the receivers said.
Investigations were continuing into the affairs of Nathans, with a number of issues identified. Discussions had started with appropriate government authorities.
Nathans Finance went into receivership last August owing $166m to investors.
