St Laurence investors to get 25-32c in the dollar
Investors in failed finance company St Laurence should get another 15c to 22c in the dollar over the next 18 months, according to a letter from the company's receivers.Barry Jordan and David Vance of Deloitte were appointed by Perpetual Trust as receivers
Tue, 29 Jun 2010
Investors in failed finance company St Laurence should get another 15c to 22c in the dollar over the next 18 months, according to a letter from the company’s receivers.
Barry Jordan and David Vance of Deloitte were appointed by Perpetual Trust as receivers of St Laurence and six of its subsidiaries on April 29.
Their letter to investors outlined what work had been done so far to recover funds for investors, an assessment of any likely asset realisations and the anticipated level and timing of any distributions to investors.
Secured debenture holders have already been paid 10c in the dollar under the moratorium repayment programme before St Laurence went into receivership, meaning that investors are looking at getting between 25c and 32c in the dollar overall.
However, the receivers noted their forecast is subject to uncertainties in the property market and the already impaired state of the St Laurence loan book.
In addition to the estimated repayment range, the receivers will also pursue guarantees provided in 2008, however under the terms of these guarantees they can only be called 15 months after the receivers were appointed.
The guarantees were provided by St Laurence managing director Kevin Podmore and related companies and added up to about $20 million.
It is not expected that there will be any funds available for the repayment of interest to secured debenture stockholders or for the repayment of the capital notes or any St Laurence unsecured creditors.
Tue, 29 Jun 2010
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