Doors close at Irongate
Irongate Property said it has asked trustee Perpetual Trust to appoint a receiver.
Wednesday, 4 May 2011
by Jenny Ruth
Irongate said its manager, St Laurence Funds Management, can't raise sufficient capital or sell sufficient assets to enable it to remedy the continued breach of two of its trust deed ratios or to pay back its bondholders when the bonds mature.
Irongate has $50 million of bonds maturing on May 15 listed on NZX which are owned by about 1,500 investors.
"It's extremely disappointing that the manager's attempts to raise new equity have been unsuccessful," says chairman Kevin Podmore.
"The moribund commercial property market has not been helpful. The manager has, however, been able to put in place sale contracts which should result in a significant de-gearing of the balance sheet and repayment of much of its senior debt, placing bondholders and shareholders in a better position," Podmore says.
Most of the St Laurence group went into receivership in April last year owing about $245 million to about 9,000 investors
In December last year, St Laurence's receivers, Barry Jordan and David Vance at Deloitte, said the prospect of the investors getting their previous estimate of about a third of their capital back depended on the fate of Irongate. The part of the group the receivers control owns 34% of Irongate.
In February, Bluestone Capital Management pulled out of negotiations with the receivers to buy Irongate's management contract.
Irongate shares last traded at one cent on the Unlisted market on April 18 giving it a market capitalisation of just below $1.5 million.
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