Geneva Finance has proposed a capital reconstruction and an extended debt repayment plan that will see over 4,000 investors convert 15% of their NZ8 million of debentures into equity in the Peter Francis controlled company. Investors would be repaid the other 85% over the next four and a half years.
The plan is contingent on existing shareholders, including Peter Francis of Chase Corp fame, stumping up NZ.439 in fresh capital. Geneva is also negotiating with an unnamed structured finance and securitization house to borrow another NZ million of funding.
“This programme would allow Geneva to expand its lending business back closer to the level experienced prior to the moratorium, and reduce the company’s historic reliance on debentures for funding,” Geneva said in a statement.
Under the plan, Bank of Scotland would agree to convert a NZ million loan due to expire on April 30 into a three year loan, with NZ million repaid over the next five months.
Debenture holders would agree to convert 15% of their investment into equity in Geneva, which would be listed on the NZAX. Note holders would convert 85% of their investments into equity.
Geneva has proposed a vote on the plan on April 28.