The receivers of Nathans Finance have reiterated that a $133 million loss by its parent company is being investigated and certain matters could be referred to the authorities.
Nathans, owned by NZX-listed VTL Group, went into receivership in August owing $166 million to investors. In February VTL reported
a loss of $133 million for the 14-month period ended August last year.
"The magnitude of the loss is of serious concern and is the subject of a thorough investigation by the receivers of Nathans," PriceWaterhouseCoopers said in a letter to debenture holders dated June 30. "Already a number of matters have come to our attention which are being investigated."
The receivers, Colin McCloy and John Waller, said they still could not provide timing for an interim dividend, though they currently held $8 million in funds and sale proceeds. That equated to 4.7 per cent of the money owed.
Prior to its receivership, Nathan's had lent $171 million to VTL, parties associated with it and various VTL franchisees. VTL owned a number of vending-machine-related business units which operated in Australasia, North America and Europe.
The receivers said they had met its June target for selling parts of VTL but needed to raise more money for the Shop24 business to enable it to reach its sale potential. The Australasian business 24seven Australasia, was sold at the end of May , while 24seven US in California was sold in April, and the Texas operations is under negotiation.
However, the Shop24 arm in Europe and United States was in a development phase and expected to need another two years. Further dividends depended on the outcome of the Shop24 capital raising process.
- NZPA
