Stiassny sees "significant" loss for ANZ on ProvencoCadmus receivership
15th Apr 10, 5:16pm
ProvencoCadmus' receivers say the eftpos product provider's bank, ANZ National, can expect a significant shortfall on the NZ$26.8 million it's owed. In their second receivers' report KordaMentha's Michael Stiassny and Brendon Gibson say ANZ National Bank has so far been given NZ$5.75 million back. Stiassny and Gibson say it is now "evident" there will be a "significant" shortfall to the bank. Asked by interest.co.nz just how significant the bank's hair cut could be, Stiassny said the receivers were still working through some issues including with debtors. "[But] the answer is the bank will incur a significant loss," Stiassny said. The news is even worse for other creditors, including ProvencoCadmus employees who have logged claims for NZ$1.6 million, the Inland Revenue Department which is yet to lodge a preferential claim, and other creditors owed about NZ$2.4 million. "They won't get anything," Stiassny said. ANZ National Bank pulled the plug on ProvencoCadmus and appointed KordaMentha on August 3 last year. The firm employed about 150 people in New Zealand and 30 overseas. ProvencoCadmus, which was listed on the sharemarket, went belly up after trying but failing to secure additional funding from its major shareholders Todd Capital and Navman founder Peter Maire. At the time of the receivership chairman Rick Christie blamed an unsustainable debt burden, sluggish investment and product markets, and a weaker-than-expected trading performance for preventing the company from achieving its objectives. The group was created through the May 2008 merger of Provenco and Cadmus who both counted ANZ as their bank. The ProvencoCadmus group included seven subsidiaries and provided electronic payment services and point of sale equipment both in New Zealand and overseas. KordaMentha has sold ProvencoCadmus' payments business to SmartPay for NZ$6 million and retail oil business to Fusion Retail Oil for an undisclosed sum. This was first published this morning in our Daily Banking and Finance newsletter, which is for our paying subscribers. Find out more here.