DORCHESTER ADVISES INVESTOR APPROVAL OF DEFERRED REPAYMENT PLAN
17 December 2008
Dorchester Pacific has announced that the Deferred Repayment Plan put to Debenture Stockholders and Noteholders has been approved by an overwhelming majority of investors who voted on the plan at the meeting held in Auckland earlier today.
The voting outcome was;
| |
|
For |
Against |
| Debenture Holders |
($163.7m) |
$125.0m (97%) |
$3.8m (3%) |
| Noteholders |
($7.9m) |
$4.9m (99%) |
$0.1m (1%) |
Under the Plan investors will be repaid their principal over 3 years. Debenture Stockholders will receive an initial payment of 20% and Noteholders will receive an initial payment of 10% prior to Christmas.
Executive Director, Paul Byrnes commented
“While the result is pleasing we appreciate that it is no cause for celebration.
“However, approval of the Plan represents the first survival step for Dorchester. We now have to focus on minimizing overheads, improving operating efficiency and continuing to simplify the structure of the organization. A financially viable business, albeit on a reduced scale, will be necessary firstly to achieve the repayments to investors over the next 3 years and secondly to attract support from shareholders in raising new equity and restructuring the balance sheet in the next year or so”.
ENDS
For more information, please phone Dorchester on 0800 100 601.