30 Jul 2008

Repayment plan mooted by mid-August

12:34 pm on 30 July 2008

Dorchester Pacific says investors should see a proposed new repayment plan by the middle of next month.

The struggling finance company owes investors $176 million. It has assets totaling $212 million, including $18 million in cash.

The company says a meeting to decide on the proposed plan will take place by early September, and it will hold a series of meetings before the main vote to answer questions about the plan.

Meanwhile, investors will continue to be paid interest.

Dorchester previously said a deferred repayment plan would see the principal paid over a period of two years.

The slumping property development market has hit finance companies, with a number collapsing or seeking to freeze repayments. Some are pulling out altogether.