St Laurence's trustee is standing by its decision to tip the property investor into receivership yesterday despite criticism it substituted its own view for those of the 9000 investors.Perpetual Trust put St Laurence, one of the country's largest property
St Laurence’s trustee is standing by its decision to tip the property investor into receivership yesterday despite criticism it substituted its own view for those of the 9000 investors.
Perpetual Trust put St Laurence, one of the country’s largest property businesses, into receivership yesterday – owing 9000 investors $245 million.
The move came after St Laurence, unable to meet moratorium payments, put forward a proposal for investors to swap debt for equity in a related company,
Today, Perpetual Trust said receivership offered investors more certainty and appointed Barry Jordan and David Vance of Deloitte as receivers.
St Laurence is hitting out at Perpetual today, saying the trustee substituted its view for those of the investors in respect of the investors’ own money.
St Laurence director Kevin Podmore said Perpetual had declined to give the board reasons fore its decision and did not consult with directors about the likely value outcomes for investors before making it.
“We are extremely disappointed the trustee has deprived investors of the opportunity to decide themselves on whether our proposed debt for equity swap plan is in their best interest.
Mr Podmore said the letter St Laurence sent to investors yesterday was not misleading and did not require trustee approval.
The directors believed the plan it was intending to put to investors in June would provide a significantly better overall result for investors than receivership.
He said investors still have the right in a meeting to change the Trustees decision if investors consider that appropriate.
Perpetual’s head of corporate trust Matthew Lancaster said he would not enter into a public debate with Mr Podmore around the decision.
“In our statement yesterday we provided an explanation for the receivership. As trustees we have been appointed to act in the interests of investors and we believe receivership best serves those interests.”
Yesterday, Mr Lancaster said receivership provided independence from the current management and directors in realizing assets for investors.
“We are also ensuring the personal guarantees provided by the corporate guarantors and Mr Podmore remain in place rather than being released as they would have been under St Laurence’s proposal.
This may provide some additional protection for investors and we feel that the Guarantors owe it to investors to permit their ability to honour the guarantees they gave them to be tested in the normal way.
St Laurence said it would cooperate with Deloitte during the receivership process as it was committed to maximise investor’s recovery.
The receivership did not include the companies that are the managers of the National Property Trust, Irongate Property and its proportionate ownership schemes.
