New Zealand Exchange Limited (NZX) has issued the following request for a correction to news reports that have appeared regarding the suspension in trading of Feltex Carpets Limited (FTX) shares yesterday.
The following is a copy of the release made by NZX yesterday with regard to the FTX suspension. It can also be viewed on NZX's website www.nzx.com:
“The receiver of FTX applied for a trading halt in FTX securities just prior to market closure on Friday afternoon. NZX does not consider that receivership, in and of itself, is sufficient grounds for a trading halt to be applied. However, in this instance the receiver has confirmed that it will not be paying FTX's share registrar, who has therefore suspended FTX registry functions with the effect that settlement of trades in FTX securities cannot be effected. Because of this, NZX has no choice but to suspend FTX securities until such time as trades are able to be settled.”
Media, please note that NZX is the market operator, not the share registrar. The share registrar for FTX is Computershare Investor Services Limited.
