22 Aug 2008

Hanover debt restructure plan promised by late August

6:23 am on 22 August 2008

Hanover Finance says it expects to finalise a debt restructure plan by the end of August, taking it a step closer to making repayments to investors.

The company recently froze almost $500 million worth of investors' funds, saying at the time that market conditions were to blame.

In a letter to investors, Hanover says its restructure plan will be finalised before the end of the month, in time to take it to a vote by investors at the end of September.

The company says the plan will enable repayments to investors over an agreed time period.

It says the restructure will protect the company's assets and preserve cash.

Hanover's shareholders have indicated they will invest more money for the proposed restructure, but the company says it's not ready to reveal how much additional equity is at stake.

The company says it intends to carry on with business and deliver the debt restructure plan within months.