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Wrightson Finance fails to get quorum to extend bonds

Wednesday 28th July 2010

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PGG Wrightson Finance failed to get a quorum at a special meeting of bondholders to vote on extending the term of its October 2010 bonds for 12 months.

The $100 million of NZDX-listed debt securities, which carry a coupon of 8.25%, are set to mature on October 8, just inside the Crown guarantee. While Wrightson Finance has been accepted for the extended guarantee and an extension to the term of the bonds had been envisaged when they were sold in 2008, differences between the two guarantees mean the company has to get agreement of bondholders.

The company couldn’t muster a quorum either in person or by proxy, it said. A new meeting has been set for August 12, the firm, a unit of PGG Wrightson, said in a statement.

It was always going to be a challenge getting a quorum at the first meeting given the high 50.1% requirement and the wide spread of bondholders around New Zealand and internationally, said chief executive Mark Darrow, who chaired today’s meeting.

“While we narrowly missed the quorum today, the meeting would reconvene on 12th August which will allow the bondholder vote to be finalised at that point.”

Wrightson Finance has a BB credit rating with Standard & Poor’s. Shares of the parent, PGG Wrightson, rose 3.9% to 54 cents today.

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