Dominion appoints administrator, cancells AGM

The ailing finance company cancelled the annual shareholders meeting it had planned for next week, according to a statement signed by chairman Rick Bettle.

The shares last traded at one cent on October 2, giving Dominion Finance a market value of NZ$716,000. The shares have lost just short of 100% of their value this year.

An administrator looked inevitable this month after the NZX regulator imposed a NZ$65,000 fine on the company for failing to file an annual report by the due date. The company has "very limited cash resources in its own right," it said on October 1, responding to the fine and censure. "Neither subsidiary is in a position to provide funding, it said."

In May, the company posted an annual profit of NZ$8.95 million, generated by Dominion Finance Group and North South, and said it expected earnings to rise in the current year. Within a month, the two units were at risk of running short of cash as the global credit crisis and waning investor confidence dried up liquidity.

By Jonathan Underhill

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