Hart secures backing for Burns Philp refloat

Friday 15th June 2001

By Nick Stride

Entrepreneur Graeme Hart looks set to secure a $98.5 million cash windfall after winning backing from major Burns Philp investors.

Mr Hart has been lobbying hard ahead of today's shareholder vote on a $A1 billion debt restructuring plan for the spice trader he rescued from the brink of bankruptcy.

The largest institutional holder with 11%, Deutsche Funds Management, confirmed it would vote for the plan.

However, Mr Hart still needs majority support for four of the interdependent resolutions, and a 75% "yes" vote for the fifth.

Shareholders have criticised the plan, which will see convertible preference shares issued to noteholders. The plan will result in Mr Hart's Rank Group lifting its equity stake in Burns Philp from 53% to 57%.

Mr Hart's charm campaign has sought to convince shareholders the refinancing is needed to free up Burns Philp's overgeared balance sheet.

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