Hanover updates advisers on progress
While insisting the Hanover group companies remain solvent and its shareholders will continue to provide support, chief executive Bruce Gordon is unable to say whether investors will get all their money back.
Monday, August 4th 2008, 5:57PM
by Jenny Ruth
The group, which includes Hanover Finance, United Finance Hanover Capital, is currently working on a restructuring proposal.
In a briefing for financial advisers, Gordon was asked how confident he is that investors will get 100 cents in the dollar back.
"We're working out a proposition to establish what we think the right proposition is. It's too early to say," Gordon said.
Gordon said Hanover's shareholders, Mark Hotchin and Eric Watson, will be providing financial support. "The shareholders have really very much front-footed this process and continue to pledge support. It's very real," Gordon said.
While it is yet to be decided what form that support will take, "we're very confident it will provide a good amount of comfort to investors going forward," he said.
Asked specifically whether that support would be financial, Gordon said "yes."
Debentures rank ahead of shareholders' funds and need to be repaid first before shareholders receive any returns.
Gordon was asked twice to provide information about the quality of the group's loan book but referred advisers back to the December accounts. He refused to give current details "in this forum" and said it was "not that appropriate for us to share that sort of detail."
The group's accounts are in the process of being audited and he only has management accounts currently, Gordon said.
He also complained about mis-reporting. "Unfortunately, Hanover is a popular topic with a number of journalists," Gordon said, suggesting journalists may be being fed information by those seeking to take advantage of current market conditions.
Hanover expects to have a proposition ready for the companies' trustees, New Zealand Guardian Trust for Hanover Finance and Perpetual Trust for United Finance and Hanover Capital, within two or three weeks, Gordon said.
After that, the timetable would be in the hands of the trustees but a roadshow conducted by Hanover is likely to follow and voting on the proposal is expected by late September or early October, he said.
One adviser asked what had happened to the company's website, suggesting "it seems to have been taken over by the Chinese Government."
Chief operating officer Perry Cornish said the company is updating the website to ensure all soliciting for investment has been removed.
| « AXA halts wholesale withdrawals from $229m MBS fund | Finance firm failures claim new victim: Axis quits ratings » |
Special Offers
Commenting is closed
|
|
Printable version |
|
Email to a friend |
