PFG to pay creditors

Christchurch-based mortgage lender PropertyFinance Group Ltd (PFG) is to pay some creditors in shares and is also offering to convert redeemable preference shares into ordinary shares.

Wholly owned subsidiary PropertyFinance Securities was removed from receivership on February 18, 2008 but a moratorium had to be revised this year.

NZAX-listed PFG is proposing that each redeemable preference share be exchanged for ten new ordinary shares, worth 10c each.

PFG has agreed to issue 4.9 million ordinary shares to trade creditors to settle trade debts of $491,000.