tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, March 28th, 10:13PM

Investments

rss
Latest Headlines

Dorchester ‘humbled’ by debenture holders’ support for plan

Dorchester Pacific head Paul Byrnes was "humbled" by the support debenture holders gave to the firm's plan to escape moratorium, given the problems in the Allied Farmers-Hanover deal.

Wednesday, June 30th 2010, 9:10PM

by Paul McBeth

Byrnes told despositrates.co.nz that garnering support from four-fifths of Dorchester's debenture holders showed the company has been given another opportunity, and has to deliver on investors' "good faith."

Investors voted in favour of a recapitalisation plan that will give some 7,200 investors still owed about $84 million units in a property trust that will trade on the on the Unlisted exchange and ownership of four hotels Dorchester worth $33 million. They will also get 36.5 million new Dorchester shares, $20 million of three-year interest-bearing notes and options to buy more stock.

Next up for the firm is the capital arising, and Byrnes is optimistic it will oversubscribe to the maximum $11 million with support from high-net worth investors.

"We've had some indications from investors because they can see there's not a lot of competition, there's not a lot of finance companies that have survived," Byrnes said. "Dorchester, with its minimum $25 million in shareholder funds, will have good have a good business to take advantage of any consolidation in the market."

The new capital is expected to be available around August 20, and until then the firm will continue to operate under its new lending policy and slowly ramp up its insurance unit.

Paul is a staff writer for Good Returns based in Wellington.

« Goldman Sachs JBWere loses its RBNZ exemptionNo prior ranking creditors ahead of St Laurence investors »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 5.25  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com