Strategic managers agree terms of $90m buyout
A group led by Strategic Finance's managers and directors agreed terms to acquire the business from Allco HIT in a deal valued at about NZ$90 million.
Monday, September 1st 2008, 10:59AM
by Jonathan Underhill
The deal amounts to a rescue of the unprofitable finance company, which halted payments to investors to avoid a liquidity crunch. Holders of its debentures, notes and preference shares will be asked to accept new terms, with the bulk of the securities to be replaced by new debt instruments that trade on the NZX.
Remaining debenture stock will be repaid on a delayed basis over 24 months, it said.
By extending the period for repayments and amending the interest paid, Strategic may buy enough time to recover from a slump in liquidity that's hampered the company's ability to pay investors.
| « Dominion Finance bad debt provision exceeds $80m | King says Dorchester investment “a disaster” » |
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