3 Sep 2008

Dominion Finance fails to provide report to stock exchange

10:22 am on 3 September 2008

Troubled finance company Dominion Finance has been denied a waiver for failing to provide financial accounts to the stock exchange.

In its decision, the NZX's regulation arm says the company's failure to provide an annual report cannot be seen as inadvertent, and is not a minor breach of listing rules.

Dominion Finance had argued that uncertainty surrounding its future meant it was unable to finalise financial statements that would give a true and fair view.

On Tuesday, Dominion Finance reported a $108 million dollar loss for the year to March, due to the slumping property development market.

The company wrote off $122 million in bad debts and goodwill due to the slumping property development market and says it's breached its banking and trustee covenants.

Dominion Finance has frozen funds and suspended payments to investors, who are owed $276 million.

It now proposes the company be wound up to pay back debenture holders and its banks in full, though that is not guaranteed.