Hart set for Burns Philp cash windfall

Friday 8th June 2001

Burns Philp rescuer Graeme Hart (pictured) is set for a massive cash windfall if a debt restructuring of the Australian company goes ahead.

Shareholders in the yeast and bakery company will vote on the proposal next week. It involves a $240 million issue of converting preference shares.

Shareholders will receive one converting preference share at 30c for every seven ordinary shares.

Noteholders will receive one converting preference share for every 21 notes.

If it goes ahead Mr Hart, who rescued the company four years ago, is set to get $98.5 million in cash and will receive shares at 30c compared to the 43c they were trading at this week.

Australian commentators have been snarky about the fact Mr Hart, who they never fail to point out is a New Zealander, will do well out of the deal. Mr Hart said he would not comment on the proposal.

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