By Sue Allen, The Dominion Post
The New Zealand arm of trans-Tasman debt collection agency RMG could be sold as part of a deal to recoup losses made by its Australian parent, RMG, administrators say.
Last week, the board of RMG announced it had put its Australian business and nine subsidiaries into voluntary administration owing about $21 million.
Though listed on both sides of the Tasman, about 40 per cent of RMG’s shares are owned by New Zealand investors. Cullen Investments, the vehicle of London-based New Zealand businessman Eric Watson, holds a key stake.
Announcing the move, RMG said debts owed to several secured and unsecured financiers, most of whom are private, amounted to A$21 million (NZ$22.4 million), of which A$17.5 million was related to “purchased books” ? books of outstanding debts purchased from companies for collection.
Administrator Wayne Benton from insolvency experts PPB said he would conduct an urgent assessment of the group’s financial position.
For this complete story, please visit New Zealand Arm of Debt Collector May be Sold to Recoup Losses.
