Another firm from New Zealand has fallen into receivership due to cash flow mismatch concerns. It is Auckland based Mutual Finance and the Company's trustee, Covenant has appointed Brendan Gibson and Grant Graham of KordaMentha as its receivers.

It stressed that there was no risk to the investors of the Company and the situation will get clearer in the coming days.

At the same time, Treasury Deputy Secretary also allayed the fears of the investors by remarking that the money of investors is safe with the Company. The investors are being instructed to claim repayment after the receivers provide relevant information to the Treasury.

On the other hand, Paul Bublitz, Managing Director of Mutual Finance revealed that they were not happy with the decision taken by the trustees of the Company. He feels that the issues facing the Company could have been resolved easily.

The Board of Directors also felt that the trustee acted in a hastily and should have been more patient and allowed the Company to resolve its problems.

But the decision to put mutual into receivership was supported by Covenant Managing Director, Graham Miller who repeated that the decision is in the interests of everyone including the investors of Mutual Finance.