You are not permitted to download, save or email this image. Visit image gallery to purchase the image.
Investors in troubled finance company Geneva Finance have overwhelmingly approved a deal to convert some of their debt into shares - and delay repayments.
Geneva Finance says that 93.56% of debenture and subordinated note holders voted for the reconstruction plan at a meeting in Auckland yesterday.
Company chief executive Shaun Riley thanked investors, Geneva's trustee, and the Bank of Scotland - one of its investors - for their support.
''Our investors recognised that this proposal will ensure a positive outcome for them,'' Mr Riley said.
''The company remains operational and continues to lend following the stabilisation and consolidation that took place during the six-month moratorium period.
''This period allowed Geneva to generate a $26 million cash reserve, and the final step of gaining investor approval for our proposal for capital reconstruction has put the company n a strong and stable osition.''
BOS, the company's primary banker, has indicated its continued support by retaining a $35 million funding facility for a further three-year term.
The key elements of the proposal are:
Geneva will list on the alternative exchange of the NZ Stock Exchange, (the NZAX), with 15% of debenture-holders' and 55% of subordinated note-holders' investments converted to ordinary shares.
The remaining investments will be repaid in a scheduled plan.
All interest will continue to be paid monthly, at the increased minimum rates of 11% for debenture holders and 13% for subordinated note holders.
Forty percent of the outstanding debenture principal will be repaid with interest over eleven months from May 2008.