Rates round-up: July 2
Allied kept on life support; Z mulls bond issue; More trouble for Blue Star?
Monday, July 2nd 2012, 6:00AM
by Niko Kloeten
Allied kept on life support
Allied Farmers has been kept alive for one more year by the receivers of its subsidiary Allied Nationwide Finance, who have agreed to extend the term of a $13.4 million loan to the end of next June.
Meanwhile, Allied has also announced it will have to write down up to $1.8 million of the carrying value of an ex-Hanover property loan asset.
Allied Farmers Investments (AFIL), a wholly owned subsidiary of ALF, is the second ranking security holder.
"The property has been in receivership for some time, and the receiver of the property has provided a draft indicative estimate that suggests the return to AFIL may be significantly lower than anticipated by AFIL, partly as a result of weather related damage to the property," Allied said.
Z mulls bond issue
Z Energy has confirmed it is considering a bond issue; chief executive Mike Bennetts said any bond issue would likely be launched in mid July.
Any issue would likely be of senior, secured fixed rate bonds, with bondholders sharing the same security as Z's banks and existing bondholders, on an equal ranking basis, the company said.
At this stage no decision had been taken as to the size of any future issue, or other terms of the bonds.
Z Energy is seeking preliminary indications of interest and has advised would-be investors to contact their financial advisers or the arranger, ANZ.
More trouble for Blue Star?
Printer Blue Star Group, which has bonds listed on the NZX, could be headed for voluntary administration according to a recent report from the Australian Financial Review.
The company and its majority shareholder Champ Private Equity are said to be in "serious talks" with the group's banks as to what to do about the troubled company.
Last year bondholders approved a refinancing plan that saw the maturity of the bonds extended out to 2015, but the company has continued to struggle according to the AFR.
Meanwhile, Blue Star Group has announced that Barry Zuckerman has resigned as alternate director for Nathaniel Childres.
Niko Kloeten can be contacted at firstname.lastname@example.org
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