Dorchester recapitalisation runs behind schedule
The finance company, which is looking to exit its moratorium, repaid debenture holders a further 7.5 cents in the dollar, taking their total repayments to 50%. That could be the final payment if the company's proposed recapitalisation plan goes ahead, which is currently undergoing scrutiny from the trustee.
Executive Director Paul Byrnes said the company had been working hard to improve its business and cashflow and has whittled down some $22 million worth of prior ranked debt in the past year.
"We have recently reached a settlement on one big individual exposure - a 675 hectare property in Turangi," he told depositrates.co.nz. The property went for more than its $3 million value, and was the last major asset with prior ranked debt.
Byrnes said he expects the proposal will get over the line, and once it gets approval, the next stage is a $10 million capital raising.
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