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Consumer urges caution for Geneva investors

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  • Consumer urges caution for Geneva investors

    From the Consumer's web-site.

    "18-Oct-2007

    Investors waiting on repayment from Geneva Finance should be asking Geneva's management some tough questions.

    Geneva's proposed six and a half month moratorium on repaying debenture holders poses a difficult choice for investors. It's hard for ordinary investors to get to grips with the pros and cons of the proposal and agree with it or elect to call in the receivers.

    What guarantees are there that investors will get their money back in six months' time? With Geneva's downgraded credit rating it looks even riskier now compared with when they first invested.

    Geneva's Standard & Poor's credit rating has been downgraded to D from a slightly higher B+ a month ago. Even a B+ is rating is sub-investment grade.

    Investors will be asked to vote on the scheme at a meeting on 5 November. Those attending should be looking for strong evidence that Geneva can trade its way out of difficulty.

    Management credibility
    Investors are really making a decision about the quality and credibility of Geneva's management team.

    To establish some of this credibility, we'd like to see the directors and owners of Geneva putting their money on the line and increasing their equity in the company. If they're so sure they can turn the company around, they would also stand to benefit. Debenture holders aren't getting any increased benefit - they are just getting back their initial investment.

    The alternative of calling in the receivers is just as unpalatable for investors, but if that was the case secured investors are likely to get at least some of their money back over the coming months."


    Pretty much says it all really.
    Patience is a virtue.

  • #2
    They're knackered mate.

    Comment


    • #3
      Wow how many finance companies is that now?
      Need a website or anything to do with online marketing? Visit Christchurch Web Design.

      Comment


      • #4
        not as many as there will be! There was an item in the weekend paper about a person who had $130k in one of them and when they sent out a nice letter saying they were OK he put another $100k in - go figure! I have limited sympathy for some of these people - greed rules. At the end of the day the diff in return between the dodgy finance companies and a bank deposit is not worth the risk.

        Comment


        • #5
          Draw the Curtains

          http://www.stuff.co.nz/4251652a10.html
          OllyN [email protected]
          Independent Property Consultant
          Residential and Commercial Solutions

          Comment


          • #6
            Closing branches . . . , laying off staff . . .

            "Not much has changed. . ." the CEO said.
            Try telling that to the staff being made redundant!
            Maybe the man is studying to be a politician? If so,
            his apprenticeship looks promising.
            Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

            Comment


            • #7
              The Plot Thickens

              I wonder if NZ creditors are aware if this connection?

              http://www.stuff.co.nz/4247930a23399.html
              OllyN [email protected]
              Independent Property Consultant
              Residential and Commercial Solutions

              Comment


              • #8
                Originally posted by OllyN View Post
                I wonder if NZ creditors are aware if this connection?
                http://www.stuff.co.nz/4247930a23399.html
                I noticed that story too; which is why I think the CEO's
                political apprenticeship is shaping up, so well.
                Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                Comment


                • #9
                  Geneva Finance has repaid $588,114 to over 900
                  customers, after a Commerce Commission action
                  was settled out-of-court.

                  Geneva admitted that it breached the Fair Trading
                  Act in telling customers that it had the right to charge
                  them additional charges and interest on loans, after the
                  items used to secure the loans had been repossessed
                  and sold. Motor vehicles were the main items.

                  How did that line go . . . ?

                  "Not much has changed. . ." the Geneva CEO said.
                  Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                  Comment

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