Finance company news briefs

WesternBay Finance ordered to reissue prospectus, Dominion Finance to raise $40 million, PRG sale unconditional, Provincial Finance doubtfuls increase.

Tuesday, 7 February 2006

Tauranga-based finance company WesternBay Finance issued two public prospectuses with incorrect accounting information, The Independent reports.

The Companies Office has ordered that one, issued last September and offering $13.9 million in debenture stock, be reissued. This was done in December.

The Independent says the issue is that redeemable preference shares have been treated as equity, rather than as debt.

Capital note offer from Dominion
Dominion Finance is looking at making a $40 million capital note offer with the proceeds being used to fund its purchase of North South Finance. 

The specific terms of the notes, including their term and coupon have yet to be disclosed.

Sale of Pacific Retail Finance goes unconditional
Pacific Retail Group (PRG) says the sale of its finance group to GE Finance and Insurance had gone unconditional. All the regulatory and shareholder approvals have been granted and the deal is due to settle on January 31.

PRG agreed to sell the Finance Group to GE in November last year for $145 million, and said it would book a $75 million profit from the deal.

Provincial Finance overdues increase
Provincial Finance has been troubled by defaults in the car loan market and has had to increase the amount of overdue and doubtful debts. It has also been warned for failing to provide adequate cover for bad debts, and shareholders have put another $7 million equity into the company.

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