About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, December 6th, 6:43PM
rss
Latest Headlines

Strategic managers agree terms of $90m buyout

A group led by Strategic Finance's managers and directors agreed terms to acquire the business from Allco HIT in a deal valued at about NZ$90 million.

Monday, September 1st 2008, 10:59AM

by Jonathan Underhill

The group will pay NZ$25 million cash, inject NZ$15 million of new funds into the business and acquire loans for NZ$50.2 million, according to a company statement today. As part of the transaction, partner BOS International will increase its debt facilities to the company to NZ$150 million from NZ$100 million.

The deal amounts to a rescue of the unprofitable finance company, which halted payments to investors to avoid a liquidity crunch. Holders of its debentures, notes and preference shares will be asked to accept new terms, with the bulk of the securities to be replaced by new debt instruments that trade on the NZX.

Remaining debenture stock will be repaid on a delayed basis over 24 months, it said.

By extending the period for repayments and amending the interest paid, Strategic may buy enough time to recover from a slump in liquidity that's hampered the company's ability to pay investors.

« Dominion Finance bad debt provision exceeds $80mKing says Dorchester investment “a disaster” »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 1.75  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

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