Dorchester Pacific is rearranging the financing of future lending by its subsidiary Senate Finance Limited, which offers loans on used vehicles.
Following the recent collapse of seven finance companies, Dorchester is reassuring investors it is not in any difficulty. Chief Executive Andrew Walker says the company is inthe final stages of negotiations with another company to assume financing of future loans brokered by Senate.
He expects to make an announcement in the next ten days.
Senate will operate as a broker of loans in the Auckland used car market, and will continue to service its existing network of dealers and customers. There will be no impact on existing loan arrangements with customers.
Mr Walker says he is not worried about the timing of the move, as it is a strategic one foreshadowed 12 months ago at Dorchester's annual general meeting.
