NZF to resume mortgage lending
Embattled NZF Group is now so confident of securing fresh equity it says its home loans division will resume mortgage lending under its committed $225 million Westpac facility.
Monday, June 6th 2011, 5:58AM
by Jenny Ruth
Perhaps even more importantly, its bank appears to be confident. Westpac has been privy to the negotiations with the potential business partners who have been conducting due diligence for months "and have agreed to renew the current Warehouse Facility of $225 million until 18 October 2012 on similar terms and conditions," NZF told the stock exchange.
The facility's expiry date had been October 18 this year.
NZF directors "are pleased to announce that the due diligence process with potential business partners has reached a stage where we are now confident of a successful outcome," the company said.
"As a consequence, the home loans division will resume origination activities under its committed Westpac warehouse facility."
NZF suspended lending under the facility early this year when it began negotiations with the potential partners. It has been seeking fresh equity since early last year.
NZF, last week, reported a $4.8 million net loss for the year ended March.
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