LAWFUEL – The Legal Newswire – Nathans Finance New Zealand Ltd collapsed Monday, owing about 150 million New Zealand dollars (about 103.5 million US dollars) to mainly mum and dad debenture investors, news reports said.
The New Zealand Stock Exchange suspended trading in shares of its parent company, VTL Group Ltd, a global franchiser of vending machines, after VTL reported it was insolvent.
The Securities Commission is investigating the collapse, and a stock exchange statement said VTL directors were scheduled to meet the Companies Office, the government corporate register.
It was the latest in a series of New Zealand finance company collapses.
The Bridgecorp group was placed in receivership in July, owing nearly 500 million New Zealand dollars to 14,500 debenture investors and holders of capital notes.
Three other companies – National Finance 2000 Ltd, Provincial Finance Ltd and Western Bay Finance Ltd – have collapsed in the last year, owing investors almost 400 million New Zealand dollars.
Most of the money raised by Nathans Finance, which is involved primarily in commercial loans, goes toward supporting VTL Group, but VTL has had trouble repaying the loans Nathans Finance has extended to it.
