Briefs

Finance firms offer refund

Two Wellington-based finance companies have refunded a combined $1.5 million to borrowers after an investigation by the Commerce Commission. Adelphi Finance and Shaw Personal Finance have refunded customers or reduced customer account balances by more than $1.4 million and $100,000 respectively, the commission said. The refunds followed an investigation in which the commission found the lenders were likely to have breached consumer credit laws. The commission said their contracts were unlikely to comply with the Credit Contracts and Consumer Finance Act because they did not include all of the required key information.

Arena liquidators reach deal

The liquidators of Arena Capital, trading as Blackfortfx, have come to a financial arrangement over a claim against director Jimmie Mcnicoll. It will not affect any action being taken by the Serious Fraud Office after the discovery that $9 million raised from investors by Mcnicoll and Arena was spent mainly on cars, travel and properties rather than foreign exchange investments. Arena’s assets were frozen by the Financial Markets Authority in May and it was placed in receivership and liquidation. Liquidators Grant Graham and Neale Jackson of Kordamentha have recovered a total of $2.8m.

Meridian Energy profit drops

Power company Meridian Energy’s net profit for the year to June 30 dropped by a quarter to $185 million from a year ago. Meridian is 51 per cent state-owned and generates about a third of New Zealand’s electricity, mostly from South Island hydroelectricity schemes. Electricity sales in New Zealand were up $39m to $939m. Sales in international markets, mostly Australia, were up $16m to $70m. Shareholders will be paid a final dividend of 90 cents a share on October 15, which will be imputed to 90 per cent.

Hutt’s business owes millions

A company part-owned by a businessman who previously bribed an ACC boss is in liquidation, owing close to $7 million. Gregory Alexander Hutt’s business, High Street Management, was put into liquidation on April 18, as it was unable to pay debts as they fell due. Soon after it was put into liquidation, the company went into receivership but was later returned to liquidation. The receivers outlined in their first and final report that the company owed more than $6.96m to creditors.

Dividend despite big loss

New Zealand Oil & Gas may have made a loss of $51.8 million over the past year, but it is to start paying a dividend again. Shareholders will receive 4 cents per share in October. The $51.8m loss is worse than the $15.5m loss from the year before. It was due in part to the significant loss in Cue Energy Resources, a Southeast Asia and Australia-focused gas exploration and production company. Cue has since announced a shift in focus and an intention to reduce costs. But the NZOG group had a cash balance at June 30 of $96.8m, up from $83.7m a year ago.