16 May 2010

Restructuring plan proposed by finance company

7:09 am on 16 May 2010

Dorchester Pacific is waiting for its trustee to approve a restructuring plan that would see it come out of a moratorium by July.

The finance company ran into trouble in the middle of last year, but has since repaid half of the $172 million owed.

The new plan involves investors taking ownership of four Dorchester-owned hotels, and being issued with interest bearing notes and share options. However, it's conditional on at least $8 million being raised.

The company believes investors could get all their money back, but the plan requires trustee approval before being considered by bondholders.