Wellington, Dec 2 NZPA - Strategic Finance has reached an agreement with Perpetual Trust and financier BOS International Australia on the terms of the planned moratorium to be voted on by investors this month.
Stockholders, deposit holders and subordinated noteholders will vote at a meeting in Wellington on December 22.
Strategic froze repayments to 15,000 investors owed $325 million in August.
A proposal by a management-led consortium to buy the business from Allco HIT, an Australian investment company, fell through in October. Receivers and managers were appointed to Allco HIT last month.
The company wants approval for a managed wind-down of its loan book as an alternative to receivership, saying that stockholders would receive higher payments than under a receivership.
Under the plan, Strategic Finance would make quarterly repayments of principal and interest through to December 2013, subject to the availability of funds as Strategic Finance assets are sold.
Dividends on the perpetual preference shares would be cancelled until the end of the moratorium, and until prior ranking stockholders, deposit holders and subordinated noteholders are repaid.
Interest on investments would be re-set at 8 percent for all securityholders, including BOS for its main bank facility.
Interest that accrues on BOS' prior ranking facilities of $25 million would continue to accrue at the existing rate.
PricewaterhouseCoopers would be appointed as monitoring accountant during the moratorium, and monitor Strategic Finance's compliance with the terms of the moratorium.
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