Private Bin understands that Strategic Finance, which yesterday disclosed a staggering un-audited first half loss of $99.8 million, is close to announcing a debt-for-equity swap deal with another company. Strategic, which owes debenture-holders about $280
Private Bin understands that Strategic Finance, which yesterday disclosed a staggering un-audited first half loss of $99.8 million, is close to announcing a debt-for-equity swap deal with another company.
Strategic, which owes debenture-holders about $280 million, bond-holders $23 million and perpetual shareholders $50 million, needs a potential Hanover-style debt-for-equity deal to avoid receivership.
The company is to update the market on its preferred options with its trustee shortly.
Private Bin is intrigued to know which company might be interested in Strategic, if any.
The rhetoric points to a listed, or at least liquid, entity because no one else would have the equity to pull it off.
Private Bin doubts that Allied Farmers would get this one past its shareholders, given the difficulties with the Hanover assets it’s experiencing right now.
South Canterbury Finance? Don’t think so – it seems to be going its own unique way with principal Allan Hubbard doing his hardest to keep the company afloat while still retaining an interest.
Who does that leave then? ANZ-owned UDC might have been a possibility but it has absolutely no ambitions to enter the property finance game.
Of course there is always statutory management, an idea that appeals to the Shareholders' Association. But that would mean further risk for the government already exposed through the deposit guarantee scheme.
Private Bin is stumped. Comments and predictions are welcome.
