Sharechat Logo

St Laurence manager fails to rescue Irongate Property

Wednesday 4th May 2011

Text too small?

St Laurence Funds Management says it has been unable to raise sufficient capital to bail the finance company it manages, Irongate Property, out of its continuing breach of two trust deed ratios and to repay its listed bonds when they mature in less than two weeks.

The bonds would have matured and been due for repayment on May 15, but Irongate Property today asked Perpetual Trust to call in receivers.

The company - originally named St Laurence Property and Finance - was re-named Irongate in 2009 after reporting a $28.2 million loss in the six months to September 30, mostly due to property revaluations.

St Laurence, a finance company, diversified into asset and funds management by acquiring long term management contracts, including for the management of Irongate Property and NZX-listed The National Property Trust.

In April last year, Perpetual Trust appointed Barry Jordan and David Vance of Deloitte as receivers of St Laurence Ltd to protect the interests of 9000 investors owed $245 million.

The receivership did not include the companies which were the managers of The National Property Trust and Irongate Property, apparently to avoid any adverse effect on the continued operation of those contracts.

But today St Laurence Funds Management said it had failed to raise sufficient capital, and Irongate chairman Kevin Podmore said: "It's extremely disappointing that the manager's attempts to raise new equity have been unsuccessful.

"The moribund commercial property market has not been helpful."

But Mr Podmore said the manager had been able to make sales contracts which should reduce borrowings and repay "much of its senior debt, placing bondholders and shareholders in a better position".



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

28th October 2021 Morning Report
Wellington Drive Technologies Limited (NZX: WDT) Performs Strongly in Q3-2021
Ryman Healthcare Limited (NZX: RYM) Acquires Extensions to Two Existing Victorian Sites
Promisia Healthcare Limited (NZX: PHL) Banking Covenant Update
Pictor Limited Announces Start of US Clinical Trials for SARS-CoV-2 Serology Test
Arvida Group Limited (NZX: ARV) Opening of Rights Offer
Move Logistics Group Limited (NZX: MOV) Announces $40m Capital Raise
27th October 2021 Morning Report
The a2 Milk Company Limited (NZX: ATM) Investor Day 2021
Contact Energy Limited (NZX: CEN) Considers Green Capital Bond Offer