NZ Windfarms Rescued From Bankruptcy By Its Investors Ponying Up More Cash.

[NNadir]

NZ Windfarms has been thrown a last-minute lifeline after its major shareholders agreed to underwrite a $31.4 million rescue package.

Yesterday, the Christchurch power generator told the market its five biggest shareholders had agreed to take up their full allocation of new shares under the rescue plan and would underwrite a further $14.97m of shares, guaranteeing a minimum of $29.24m would be raised.

The company needed to raise at least $25.6m for the plan to succeed and NZ Windfarms said it now believed the full $31.4m would be raised.

Earlier this month, an independent report said if the rescue plan failed the company would be unable to finish its Te Rere Hau wind farm in Manawatu and could face insolvency.

The commitment from Auckland electricity network company Vector, and other major shareholders including AMP Capital and Tyndall Investment Management, to underwrite the deal comes at the last minute with the rescue package offer closing today...

...Money raised will be used to repay a $6.5m bridging loan from Vector and finish the Te Rere Hau wind farm. The company has already installed 65 of the 97 turbines and in the last March quarter made $1.52m from electricity generation. However, the company has been caught in tight cash position, reporting a $6.53m loss for the half-year to December 31.

Shares closed up 4 per cent, or 1 cent, yesterday.

http://www.stuff.co.nz/business/industries/3635607/NZ-Windfarms-rescue-at-the-last-minute">NZ Windfarms Rescue.

They need to charge twice the price for wholesale electricity as New Zealanders currently pay for retail.

[onethatcares]

1. if 4 % is one cent, this looks like a good ground floor opportunity

at least to me. Any idea how to obtain a thousand shares?

[NNadir]

4. The ground floor is the best place to be in Ponzi scheme.

Just ask the people who knew Bernie Madoff in the early 1990's.

[Statistical]

6. Pretty tough.

It is on New Zealand stock exchange. Not many brokers in US provide access to the NZX.

Even my broker (Interactive Brokers) which provides foreign market access to 28 countries doesn't provide access to New Zealand.
Likely not worth the effort unless you wanted to invest a substantial amount of money (tens of thousands of dollars).

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