SA debenture lender Angas Securities in fund halt for review THE Australian Securities and Investments Commission has asked South Australia's largest debenture lender, Angas Securities, to stop accepting new investments pending a revised prospectus and the outcome of a review of its operations. ASIC requested the funding halt after the company's trustee, The Trust Company, asked for an independent business review to assess whether the lender "had sufficient capacity to trade and operate as a going concern and repay all first ranking investments in full as they fall due," Angas says in its half-yearly report. That review is largely complete and has been sent to ASIC and Angas's auditors, but Angas's half-year report says The Trust Company is yet to reveal if it requires further measures. Angas executive chairman Andrew Luckhurst-Smith said the review was one of many The Trust Company had initiated following two debenture companies entering receivership in the last six months of 2012. Since then, there has been a sector-wide focus on debenture lenders by ASIC. In its half-year report, the Adelaide lender said that despite the review, it had prepared its financial statements on a going-concern basis for a number of reasons. These included that: ITS forecast cash flows remained positive for the foreseeable future. THE company has adequate resources to continue operating, including more than the minimum liquid assets and increased capital. EVEN without new investor funds, there were sufficient alternative funding sources and assets could be realised if required. The accounts of Angas were audited by global firm Deloitte which signed them off as unqualified. Angas said it welcomed regulatory reforms that aim to improve investor confidence in the sector and would engage in the consultation process. It said the four-year transition process for reform would give the company sufficient time to make any necessary adjustments. Mr Luckhurst-Smith said the company remained conservative in its loan to valuation ratios, currently 65 per cent on its prime security - but excluding additional securities. Now its half-year report was published, Angas will seek clearance from ASIC to issue a prospectus for its next funding round.