Propertyfinance Securities revival proposed
Propertyfinance Group (PFG) is planning a meeting of debentureholders to discuss a restructuring proposal that would allow its finance company to come out of receivership.
Sunday, 4 November 2007
Trustee Guardian Trust holds PFS assets of loans and cash valued at $670m.
Debenture stock holders will be asked to extend by three years from December 19 meeting date, the maturity dates of their investments. An extraordinary resolution would need 75% support.
Principal and interest payments would be made as the PFS assets are realised. The expected interest rate would be 9.33% -- equivalent to the weighted average rate which was payable on PFS's debenture stock at the time of receivership.
If the resolution is approved at the Auckland meeting, the first payment, comprising interest arrears and an initial principal payment, is expected to be made on December 21.
If the resolution is passed, PFS will effectively become a non-trading entity with an orderly wind-down of its assets and liabilities, said PFG, which would manage the wind-down. The meeting is conditional on a number of aspects including the completion of a short form prospectus, agreement with the Trustee on the size of a capital injection to PFS by PFG and rescheduling PFS's unsecured creditors.
PFG managing director Darryl Queen said the restructuring proposal was clearly in the best interests of investors.
"We anticipate an orderly wind-down will see a complete recovery of principal and interest for debenture stock holders."
He said he was "comfortable and confident", after talking to the main financial advisers who put investors into PFS, the resolutions would pass.
Rather than raise money through advertising, as many finance firms do, PFS was recommended by eight financial advisory firms.
PFG plans a series of meetings throughout the country prior to the special meeting to brief debentureholders.
Queen said the restructuring would have a positive effect on PFG, allowing it to consider commercial property lending opportunities using funding trusts it had established and other opportunities in the property market. However, 95% of PFG's assets are in PFS.
Commenting is closed
Find a Rate
2 September 2015
2 July 2015
15 June 2015
4 May 2015
24 April 2015
Cash PIE Rates
Weekly Updates including news and commentary
Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.
© Copyright 1997-2015. Tarawera Publishing Ltd. All Rights Reserved.