3 Dec 2008

North South Finance vote in favour of repayment plan

6:57 am on 3 December 2008

Investors in Dominion Finance's subsidiary, North South Finance, have accepted a plan that could see them repaid their original investment in full over three years.

In total, 83% of the company's investors voted in favour of the repayment plan when they attended a meeting in Auckland.

It was the first in a series to be held by failed finance companies this month, whose fate rests in investors hands.

North South Finance's plan means it will be wound-down, and its property loans gradually sold off.

Chairman Rick Bettle said the the outcome is better than receivership because it has the potential to get investors back 88 cents or more in the dollar within a year.

Graeme Miller, managing director of Covenant Trustee which is governing North South Finance, said he was confident the property loans cam be recovered as 88% are first mortgages.

North South Finance investors will receive 8 and half cents in every dollar owed within weeks, more than the 5 cents initially promised.