KEY POINTS:
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, North
America 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 $133 million 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," the receivers said.
Nathans Finance went into receivership owing $166 million to investors.
Meanwhile debenture investors in Five Star Consumer Finance have been told they are likely to get back less than first predicted.
In its initial report in October receivers Richard Agnew and Anthony Boswell estimated investors would get back between 26 per cent and 40 per cent of their outstanding investment.
But this week they down-graded the forecast to a range of between 20 per cent and 25 per cent.
The receivers said the main reason for the decline related to a decrease in the estimated realisations from the commercial loan book, the consumer loan book and the inter-group advances.
In particular the consumer loan book was sold last month at a significant discount to its face value due to a portion of the borrowers being in arrears and having a history of defaults.
The receivers said they would be making a pro rata principal repayment of 17.5c in the dollar on April 15.
Five Star collapsed in August last year owing $54.43 million to 2300 debenture investors.
- NZPA, staff reporter
