5 Dec 2008

Restructuring plan approved for finance company

12:17 pm on 5 December 2008

Investors in St Laurence have overwhelmingly approved a restructuring plan for the finance company to repay 70% of the money owed to debenture holders over the next five years.

Nearly 96% of debenture holders and over 99% of capital noteholders supported the proposal that will see St Laurence repay $250 million to about 9000 investors.

Under the deal, investors will be asked to accept an 8% interest rate return, with outstanding interest paid after the vote. Capital repayments will resume from 1 April next year.

St Laurence's owner, Kevin Podmore will inject $10 million worth of property as new capital, and along with others, provide a $20 million guarantee under certain circumstances.

He says the guarantee is important as it shows investors that they are not the only ones feeling pain.