Dorchester Finance investors approve plan
Under the plan the 7,200 investors, owed $168 million, will be repaid their principal over three years.
Wednesday, December 17th 2008, 9:40PM
Debenture stockholders will receive an initial payment of 20% and noteholders will receive an initial payment of 10% prior to Christmas.
At the meeting held in Auckland 97% of debenture holder voted for the plan and 99% of noteholders were in favour.
The huge level of support was achieved even though former Dorchester managing director Brent King encouraged investors to vote against the plan.
Dorchester executive director Paul Byrnes described the result as "pleasing".
"Approval of the plan represents the first survival step for Dorchester. We now have to focus on minimising overheads, improving operating efficiency and continuing to simplify the structure of the organisation.
"A financially viable business, albeit on a reduced scale, will be necessary firstly to achieve the repayments to investors over the next three years and secondly to attract support from shareholders in raising new equity and restructuring the balance sheet in the next year or so".
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