Darren Ludlow, the Invercargill City Council finance committee chairman and mayoral candidate, says no projects will fall over if the council does not get its budgeted for $2m dividend from holding company Holdco. The Invercargill City Council may not receive as big a dividend from its holding company, Holdco, as it budgeted for this year. Holdco has already paid the council an interim dividend of $3.8m but is undecided on whether to pay the remaining $2m dividend. "Holdco is still considering whether a further dividend will be paid to council this year, and a decision from Holdco is expected by May." However, both Holdco and the council needed to collectively ensure Holdco did not create a "cash flow crunch" by paying a dividend which was too big.

Source: Stuff April 15, 2019 04:52 UTC