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Dorchester suspends interest payments on new plan

Monday 22nd September 2008

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Dorchester Finance, a unit of Dorchester Pacific, has suspended interest payments after agreeing to changes to its plans to defer repayments.

After discussions with its trustees and advisers, the company has revised its proposal to increase emphasis "on achieving full and early repayment of principal," it said in a statement.

The suspension on interest payments started on September 17, it said in a note to debenture and note holders.

The shares of Dorchester Pacific has slumped 96% to eight cents this year, shrinking its market value to just NZ$2.9 million.

The New Zealand Shareholders Association has support of 6.1% of shareholders in the company calling for the immediate appointment of a liquidator at an emergency general meeting. If that fails, they want chairman Barry Graham and Paul Byrnes to be removed as directors.

Both directors intend seeking re-election to the board.

By Jonathan Underhill

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