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  1. #1
    Join Date
    Jul 2006
    Location
    Christchurch
    Posts
    302

    Default Property Finance has stopped trading!

    As of this morning PFS have suspended share trading.

    As a consequence PFS are not accepting any new applications and any applications currently in the pipe line will need to be refinanced.

    There will be an official update coming out from PFS regarding the matter in due course, so for the meantime please wait until this information has become available.

    As soon as I hear anything more we will let you know.
    Scott Miller - Mortgage Broker
    Ph: 03 980 4541 M: 021 34 36 48
    AMS's website My email

  2. #2
    Join Date
    Oct 2004
    Location
    Invercargill
    Posts
    283

    Default

    Thank you for the update. Can you give any thoughts on the likely repercussions for property investors?

  3. #3
    Join Date
    Jul 2006
    Location
    Christchurch
    Posts
    302

    Default

    It may mean they have put their hands in time and only require some restructuring.

    I have found PFS to be a great lender to deal with and hope that the above comment becomes reality.

    There is no need to panic as the book would be picked up by another lender if the worse case scenario occurred.
    Scott Miller - Mortgage Broker
    Ph: 03 980 4541 M: 021 34 36 48
    AMS's website My email

  4. #4
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default

    This will be the biggest $*#(&$#(@ by far for investors. PFS drove the lodoc/nodoc growth. Money is about to get very hard to get!!

  5. #5
    Join Date
    Apr 2005
    Location
    Auckland / Cappadocia, Turkey
    Posts
    2,312

    Default

    From the NZ Herald:
    Another finance firm - Property Finance Group - in trouble

    Look out for Monday's special section in The New Zealand Herald reviewing the state of our finance companies.

    Another finance company, Christchurch-based Property Finance Group, is in deep trouble.
    The board of the NZAX-listed company suspended trading of the company's shares today due to "concerns about the company's ability to manage its current liquidity position given the significant changes being experienced in the financial markets".

    "Notwithstanding the continued good quality and value of its loan, portfolio directors deemed it necessary to take action to protect the interests of all stakeholders," the board said.

    It said it was investigating a number of restructuring opportunities and would make a further statement on Monday.

    The company was not answering calls this morning, with a message telling callers it had too many calls to answer the phone.

    Stock exchange head of marketing services Elaine Campbell prompted today's suspension after she wrote to Property Finance about the concern and speculation surrounding finance companies.
    "The events should give all finance companies cause for reflection," she said.

    "Given the current environment New Zealand Exchange Limited considers it incumbent upon itself to write to all listed finance companies and listed companies with material finance company subsidiaries (the failure a subsidiary can (and has in a recent example) impact parent viability)."

    Property Finance, formally Avon Investments, reported in its 2007 annual report it had loans receivable of $412.6 million, and cash or cash equivalents on hand of $109.2m.

    The accounts showed it had debt notes of $425.9m and debenture stock of $86.6m.

    This year it tried to buy a stake with in Canterbury's Loan and Building Society, with a view to a merger. CBL has assets of $180 million.

    This week Nathans Finance Ltd became the fifth finance company in 15 months to collapse. It had a loan book of $170m.

    Bridgecorp went into receivership just weeks ago, while Western Bay Finance, Provincial Finance and National Finance 2000 failed last year. Yesterday, the Reserve Bank took unusual steps to improve liquidity in the financial system. Pressures over the past week, reflecting a global drying up of credit after problems emerged in the United States' subprime mortgage market, had prompted the central bank to try to increase supply in the interbank market, Reserve Bank Deputy Governor Grant Spencer said.

    "Pressures have persisted over the past week warranting steps to ease liquidity conditions in the interbank market," he said in a statement. "This measure is aimed solely at easing short-term interbank liquidity pressures and has no implications for the Bank's monetary policy stance," he said.

    It has not pumped extra cash into the financial system during the current market squeeze as some other central banks have, but in response to demand for government securities has increased the amount of Treasury bills and short-term government bonds.
    http://www.nzherald.co.nz/section/3/...ectid=10459637
    Lisa

  6. #6
    Join Date
    Jul 2006
    Location
    Christchurch
    Posts
    302

    Default

    The following link is the latest from PFS


    http://www.propertyfinance.co.nz/fil...20Aug%2007.pdf
    Scott Miller - Mortgage Broker
    Ph: 03 980 4541 M: 021 34 36 48
    AMS's website My email

  7. #7
    Join Date
    Jun 2005
    Location
    Nelson NZ
    Posts
    3,864

    Default

    Quote Originally Posted by scoob View Post
    It may mean they have put their hands in time and only require some restructuring.

    I have found PFS to be a great lender to deal with and hope that the above comment becomes reality.

    There is no need to panic as the book would be picked up by another lender if the worse case scenario occurred.
    The media reports that they have locked the entrance to the lifts barring access from their clients.
    Does not sound like a "great lender to deal with"
    Not too sure about that assurance about nothing to worry about. The debenture holders have lost it and the property owners with mortgages through them might in fact have their loans on sold. The banks and other people doing that will pick up the "debts" that is what loans are called at a good discount. They are then just as likely to change the conditions of the loans. Things like term of the loan, refinace fees, perhaps new valuations, and interest rate regardless of what fixed rate you thought you had.
    Poor guess work on my part, may be. Sure but it happened to me in the past with one of my mortgages and why not now.
    Last edited by Glenn; 25-08-2007 at 09:39 AM. Reason: refinement

  8. #8
    Join Date
    Jan 2004
    Posts
    1,545

    Default

    Quote Originally Posted by pooomba View Post
    This will be the biggest $*#(&$#(@ by far for investors. PFS drove the lodoc/nodoc growth. Money is about to get very hard to get!!
    So, do you mean this crowd pushed out Subprime/liar loans?
    Maybe nobody will want this paper?
    Find The Trend Whose Premise Is False - Then Bet Against It

  9. #9
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default

    Don't understand your terminology GAtekeeper??
    PFS pushed the trading banks into having to compete with them in the lodoc and nodoc loan areas. With them falling over it will be much easier for the main lenders to significantly tighten their lending policies. They are all bleeding with bad debt, only the smaller fry die though.

  10. #10
    Join Date
    May 2007
    Location
    Wellington
    Posts
    1,520

    Default

    Quote Originally Posted by pooomba View Post
    This will be the biggest $*#(&$#(@ by far for investors. PFS drove the lodoc/nodoc growth. Money is about to get very hard to get!!
    I agree, money is about to become very difficult to get...this is not good at all as there must be more to follow.

    If I had $$ in a finance company I'd be running for the door to get it out, surely everyone else is.


 

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