Hanover shareholders vote in favour of plan

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Hanover Finance has succeeded in its restructuring plan with all four resolutions put to a meeting in Auckland being passed.

Tuesday, December 9th 2008, 2:38PM

Hanover has announce that its debt restructure proposals for secured depositors, secured stockholders, subordinated noteholders and bondholders have been approved at the investor meetings held in Auckland today.

Over 70% of each class of investor voted. All of the extraordinary resolutions, each of which required 75% approval, were passed.

The results of the extraordinary resolutions, as a percentage of votes cast, were:

• Hanover Finance secured depositors – 92.97% in favour
• United Finance secured stockholders – 94.15% in favour
• Hanover Finance subordinated noteholders – 75.76% in favour
• Hanover Capital bondholders – 93.23% in favour.

Hanover will now commence implementation of the plan.

Hanover chairman Greg Muir says investors have clearly understood the real issues triggering the restructuring proposal, and have demonstrated confidence in the board, management, shareholders and trustees to work through this difficult period in property and finance markets.

“Hanover is confident that the plan has every prospect of delivering on the repayment schedule endorsed by investors. We will be focused on achieving at least that outcome within the five-year term of the plan.”

Secured depositors and stockholders will receive a first repayment of capital on 15 March 2009, with further payments quarterly from the end of June 2009 through to December 2013.

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