26 Nov 2008

No payment predicted in January from Strategic Finance

2:36 pm on 26 November 2008

Investors in Strategic Finance will not get their next dividend payment on perpetual preference shares due in January.

The struggling finance company says a long-awaited moratorium proposal is near completion.

Separately, the parent company of OPI Pacific Finance has been placed in liquidation, but the trustee of the struggling finance firm, Perpetual, reportedly says that move will not affect investors.

Corporate Finance has been appointed the liquidator of OPI New Zealand, and The New Zealand Herald reports creditors are expected to get only 6 cents in the dollar.

Its subsidiary OPI Pacific owes 1200 investors about $335 million. Its trustee, Perpetual, is negotiating with an Australian company Octavier which has an agreement to pay stockholders their money back.

But Octavier itself is in receivership and whether it can pay the money is questionable.