Capital + Merchant Finance yesterday appointed Grant Thorton as receivers the
New Zealand Herald reported. The firm owes about NZ$190 million to about 7000 investors.
The firm is, or was, the thirteenth largest finance company in New Zealand with about NZ$250 million in assets. Capital + Merchant is the twelth finance company in New Zealand to fail in a series of escalating distress that began in the first half of 2006.
Mr Simpson said he and colleague Tim Downes had been appointed receivers by Australian company
US financier Fortress Credit Corp, which specialise in high yield lending to small corporates in Australia and New Zealand, moved to appoint receivers. Capital + Merchant owes Fortress about NZ$20 million the NZH reported. Fortress has priority over investors in debentures.
The Dominion Post reported that Fortress attempted to appoint receivers last Friday but that the company contesated the appointment in the High Court.
Capital + Merchant's trustee, Perpetual Trust, has appointed KordaMentha partners Grant Graham and Brendon Gibson as receivers who will act on behalf of creditors other than Fortress.