Dorchester Pacific has announced some of the details of its deferred repayment plan and has said it hopes to put a proposal to investors before Christmas that would allow repayment of 20% of investors' principal before the end of the year. Property financier Dorchester owes 7,800 investors NZ$176 million, according to our 'Deep Freeze' list. Dorchester directors said in a statement to the NZX they expected the plan, which aimed to repay all principal for debenture investors within 3 years, would produce a better outcome for investors than a receivership. There was no mention of whether interest would be repaid. Under the plan there would be a further NZ$10 million of provisioning against property loans. Dorchester Pacific said it has also decided to write down the value of its investment in St Laurence to nil. Shareholder funds would fall to NZ$5 million at the end of September, it said, without detailing the full results for the year. * This article was first published earlier today in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.
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