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Receivers estimate of St Laurence distributions

Fuseworks Media
Fuseworks Media

Wellington, June 29 NZPA - Receivers of Wellington-based property and finance company St Laurence and six subsidiaries have told secured debenture holders they can expect a distribution of between 15c and 22c in the dollar over the next 18 months.

That would be on top of the 10c in the dollar paid out to debenture holders under a moratorium repayment programme prior to St Laurence going into receivership in April.

In a letter to investors today, receivers Barry Jordan and David Vance of Deloitte said the expected distribution was a best assessment and would depend on an orderly realisation of remaining management contracts, sale of National Property Trust units and no further adverse movements in the property sector.

The receivers said they would also pursue guarantees provided in 2008, but under the terms of those guarantees they could only be called 15 months after the receivers were appointed.

It was not expected that there would be any funds available for the repayment of interest to secured debenture stock holders or for the repayment of capital notes or any St Laurence unsecured creditors, the receivers said.

Responding to the receivers' advice, St Laurence directors Kevin Podmore, Sandra Lee and John Gosney said that given the estimated distributions from the receivership, they remained convinced investors should have been given the opportunity to decide on their future.

A statement today said the three directors expressed disappointment at the low forecast of distributions to investors.

Speaking for the three, Mr Podmore said they were saddened investors would get less than a third of the amount it had been forecast would be returned under their alternative capital restructure plan.

The trustees had decided to place St Laurence into receivership rather than give investors an opportunity to consider the plan. Therefore Deloitte had little choice in the route it needed to take to recover investors' money, with the result being the low estimated distribution announced today, Mr Podmore said.

The receivers said the next communication to investors due in December would provide an update on the receivership progress and the timing of any proposed distributions. They hoped to be able to make an initial distribution in January.

They said St Laurence had 9431 secured debenture holders owed nearly $212 million plus nearly $23m in accrued interest.

Total debts and liability as at April 29 of $247m also included $12.3m capital notes and unsecured creditors of $235,000.

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