Orange Finance, which is 100% owned by Money Managers founder Doug Somers-Edgar, is no longer issuing debentures because of its suspect lending practices.
Doug has apparently sold his interest in Money Managers and has "stepped down" from it in June 2008 but still has manifold financial interests in companies that MM lend money to. Money Managers pushed Orange Finance to its investors.
Money invested with Orange Finance has been lent to some other Money Managers or Doug Somers-Edgar vehicles that have crashed and burned and lost investors money, Money Manager's First Step and its Totara Fund have both lost investors tens of millions so far.
Interrelated financial musical chairs have also been played to pay out investors from these various financial failures and it makes one wonder which investors will truly lose out in the end.
It is unclear at this stage whether investors in Orange Finance will eventually get their money back, considering the large amount of bad loans made by the investment vehicle and money outstanding from debtor borrowers, but the company says it can repay investors on their expected maturity date.
I would advise investors in Orange Finance to keep on the tail of Orange directors and or their adviser from Money Managers who advised them to put their money into the finance company in the first place.
Don't be put in the same position as this fellow:
One investor contacted by the Sunday Star-Times said he had been impoverished by a combination of dealing with Blue Chip, then putting what he had left of his life savings - some $50,000 - into First Step.
When he received $20,000 back (he's still waiting for the rest), he followed Money Managers' advice and put it into Totara.
Relying only on NZ Super, he is now facing $1700 a month mortgage payments he can't afford because of the Blue Chip deal, and has no access to the money he has with Money Managers.
Doug Somers-Edgar, his part or fully owned companies or their subsidiaries and Money Managers cannot be trusted when it comes to your money.
Get it out now if you can.
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Money Managers First Step gives investors the middle finger
Money Managers First Step saga: 3 Story wrap
Related Amazon Reading
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c Share Investor 2008 & 2009