Dominion shares able to resume trading

The NZX has announced that shares in Dominion Finance can resume trading even though the frozen property financier has yet to file an annual report. Shares in Dominion had yet to trade by mid-morning. They were suspended by the NZX on July 8 because Dominion had not met a deadline to file its accounts for the year to March 31. The NZX said it had decided to allow trading in the interests of investors, even though it still believed Dominion should be in a position to file its accounts. Dominion Finance said last week it expected to announce a recapitalisation plane within two weeks.Here is the full statement from the NZX.

On 8 July 2008, NZX Regulation ("NZXR") announced that Dominion Finance Holdings Limited ("DFH") had failed to provide its Annual Report for the period ending 31 March 2008 within the period required by NZSX Listing Rule 10.5.1. As a result DFH securities were suspended from trading from that date. Since that time NZXR has been in discussion with DFH in relation to remedying that failure. These discussions are continuing. NZXR believes that investors elect to invest in NZX listed securities on the expectation that doing so will provide them with an open market on which to offer their securities for sale. DFH shareholders are precluded from doing so while DFH securities are suspended from trading. In this case NZXR believes that shareholders interests are best served by enabling them to deal with their holdings if they wish to do so. Accordingly, NZXR advises that the suspension placed on DFH's securities will be lifted following the close of market on 5 August 2008. Background On 17 June 2008 DFH announced to the market its intention to seek a moratorium from its creditors. At that time DFH sought suspension from trading while the terms of that moratorium were negotiated, as it believed there was a risk of a false market developing for reasons outside its control. For the reasons set out in its announcement of 19 June 2008 NZXR declined that request. On 14 May 2008 DFH made a preliminary announcement of its financial results as at 31 March 2008. NZSX Listing Rule 10.5.1 required DFH to deliver its full annual report to NZX and its shareholders by 30 June 2008. DFH failed to make this deadline, and in accordance with the standard practice outlined in the NZSX Listing Rules, DFH securities were suspended from trading from 8 July 2008. DFH released further information in relation to its financial position on 10 July and its recapitalisation negotiations on 1 August 2008. DFH and its advisors believe that it is unable to provide the Annual Report as a result of uncertainty surrounding the recapitalisation proposal. They believe that it is impossible to finalise the financial statements in a manner which a true and fair view of the company's financial position. NZXR does not accept DFH's position and believes that with use of appropriate assumptions and qualifications, DFH should be able to complete its report.