Propertyfinance restructure advertising banned

The Securities Commission yesterday moved against failed finance company Propertyfinance Securities, banning advertising for a proposed restructuring of its moratorium.

"The commission believes that the advertisements were likely to mislead investors about the relative advantages and disadvantages of the proposal as compared with the alternative option of receivership and did not comply with the law," it said.

Property Finance Securities was placed in receivership in August 2007 but secured a moratorium agreement from investors the following December.

However, the commission said it understood the company had been looking to restructure the moratorium after failing to meet a scheduled payment in December.