Thursday 26th June 2008
|Text too small?|
The stock fell to 10 cents from 21 cents yesterday, when the plans were announced. The move follows a similar announcement from 25%-owned St Lawrence this week.
Dorchester chairman Barry Graham yesterday said the company will withdraw its prospectus and seek approval to defer payments on debentures.
"As a result of the rapid decline in the property finance market and a continuing fall in reinvestment rates the board has formed the view that there is now a risk of a cash flow shortfall arising in future months," told the Sharechat website yesterday.
The company, which owes debenture holders NZ$168 million secured against total assets of $212 million, has hired Grant Samuel and Associates as an independent adviser.
No comments yet
Dorchester lifts Turners Auctions stake to 19.85%; no plans to make offer
Dorchester raises $4.1 million in placement supported by major shareholders
Dorchester investors exercise 134 mln options, major shareholders asked to sell down
Dorchester narrows first-half loss, forecasts FY profit
Dorchester agrees to buy EC Credit for $18.5M in cash, stock and earn-outs
Dorchester rescue plan ups net profit
Dorchester profit boosted by capital reconstruction plan
Dorchester appoints general manager, insurance and lending
Dorchester staves off receivers
Dorchester posts annual loss of $19.1 mill