New Zealand Finance group collapses
Published November 29th, 2007
Auckland based Capital + Merchant Finance has collapsed and been placed in receivership with debts of around $190m, leaving the deposits of at least 7000 investors under threat.
It is the 13th such failure in the industry in New Zealand the past 18 months.
Capital + Merchant Finance Ltd and Capital + Merchant Investments, had breached general security agreements with Australian company Fortress Credit Corp, said receivers Tim Downes and Richard Simpson of Grant Thornton.
The company’s collpase has also affected broadcaster TVNZ.
Capital + Merchant Finance were the sponsor of TVNZ’s nightly news updates, but a spokesperson said that sponsorship had now been pulled.
“We can’t accept advertising from a company who can’t pay,” spokeswoman Megan Richards said this afternoon.
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