Strategic receivers say no money available for pref shareholders, plans to delist

Friday 26th March 2010

Receivers of Strategic Finance say there is no money available to repay the failed finance company’s preference shareholders and there will likely be a shortfall in the total amount available to creditors.

“In these circumstances, the receivers are applying to NZX to cancel quotation of SFL’s preference shares and to delist SFL,” a statement from receivers John Fisk and Colin McCloy of PricewaterhouseCoopers said.

Strategic was placed in receivership on March 12 by Perpetual Trust, ending moratorium arrangements that have been in place since December 2008. It missed a milestone debt repayment on January 7 after failing to generate sufficient loan recoveries.

The total value of its loan book had fallen below 75% of the aggregate principal monies owed to debenture holders, depositors and subordinated note holders, net of provisioning.

Currently 10,000 debenture holders are owed $368 million, 1,000 noteholders are owed $22 million and 66 depositors are owed $1.5 million, according to the receivers.

Businesswire.co.nz

Comments from our readers

No comments yet