Rates round-up: July 30
National Finance director found guilty; payment for Bridgecorp investors; TrustPower launches $200m bond issue
Monday, July 30th 2012, 7:07AM
Former National Finance director Carol Braithwaite has been found guilty on one charge of breaching the Securities Act by making untrue statements in a prospectus.
The charge carries a maximum penalty of five years in jail or a fine of $300,000.
Braithwaite was the first of the finance company directors to be tried by a jury, which last week reached a majority verdict meaning 11 of them thought she was guilty while one juror thought she was not guilty.
Justice Pamela Andrews released Braithwaite on bail to her Devonport home until sentencing on September 18; Crown lawyer John Dixon said prison was a possibility.
Braithwaite accepted there were "material untruths" in the document but argued that she believed the prospectus was correct when she signed it in 2005.
National Finance went into receivership in 2006, owing investors $21 million. Some investors have recovered 49c in the dollar.
Braithwaite's ex-husband Allan Ludlow is serving a sentence of six years and four months' after being convicted of Serious Fraud Office and Financial Markets Authority charges.
Payment for Bridgecorp investors
The receivers of Bridgecorp (in receivership and liquidation) have announced a second interim dividend to the company's secured investors of $20.6m (4.5c in the dollar).
Meanwhile, the receivers' civil claim against the Bridgecorp directors is set to go ahead following the end of their respective criminal trials.
Bridgecorp receiver, PwC Partner Colin McCloy said, "Payment will be made in the week starting 20 August 2012. This will bring the total distributions to date to 8c in the dollar."
The receivers said further distributions remained dependent upon the outcome of legal proceedings relating to the actions of directors and other parties prior to the receivership.
McCloy said, "With the Financial Market Authority's criminal proceedings against the directors having now concluded, the receivers' civil claim, which was filed in January 2012, is now proceeding through the Court."
TrustPower launches $200m bond issue
Listed electricity retailer TrustPower has outlined the details around its seven-year bond issue of up to $200 million.
The offer of unsecured, subordinated fixed rate bonds will open on August 9, with the interest rate to be announced via the NZX on or before that date.
The issue consists of up to $75 million of bonds (with the option to accept up to an additional $50 million of oversubscriptions) under the general offer and up to $75 million of bonds under the exchange offer.
TrustPower is New Zealand's fifth-biggest electricity retailer and has a market capitalisation of about $2.4 billion.
| « Blue Star to sell despite likelihood of bonds then being worthless | Orange Finance in receivership » |
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