The directors of vending machine franchise business VTL Group say they have secured the necessary funding to resume trading.
The company became insolvent and stopped trading last month after its wholly-owned subsidiary Nathans Finance was put into receivership by deed trustee Perpetual Trust. Nathans was owed about $110million by VTL as of the end of July.
Last week VTL said it had reached agreement with Nathans Finance receivers - John Waller and Colin McCloy of Pricewaterhouse Coopers - to develop a plan for selling the firm's businesses as a going concern in a controlled manner to preserve the value for all stakeholders.
Yesterday VTL told the stock market it had completed the necessary funding arrangements.
"This will enable the vending and related businesses of VTL Group to continue to trade pending a sale in a controlled manner," the company said.
Nathans Finance receiver Colin McCloy said it was too early to say how much money might be recovered for investors.
"Until the directors of VTL conclude their sales process it's just too early to make any informed comment," McCloy said.
"The directors of VTL are keeping us closely informed." he said.
VTL chairman Gary Stevens was in the United States last week discussing options for selling all or part of the businesses - including the 24seven and Shop24 brands, and the firm's propriety vending management software and franchise business system.
It was hard at this stage to say whether all of VTL's assets would be sold "but it is a possibility depending on exactly what we're able to sell and the structure of any sales we make", Stevens said.
Stevens would not comment on the failure of Nathans.
"I can't comment about Nathans. It's in the hands of the receivers," Stevens said.
The last market price for VTL shares was 70c, although trading on the NZX continued to be suspended.
A plan announced in July by VTL to sell North American franchise business assets to Bacon Whitney for a subordinated note of US$67.5 million, since abandoned, had been unrelated to the subsequent situation at Nathans Finance, Stevens said.
"That was just a totally separate issue," he said.
BACK IN BUSINESS
*VTL's vending and related businesses will be able to continue trading.
*Return to Nathan Finance investors unknown at this stage.
*Talks taking place concerning the sale of all or part of VTL.
