Strategic CEO sees moratorium plan by Christmas

Strategic Finance Chief Executive Kerry Finnigan believes the property financier will be able to table a moratorium proposal with investors before Christmas and that investors should eventually be repaid fully. Finnigan told interest.co.nz via email that the trustee Perpetual Trust was considering a new moratorium proposal for a management-led Strategic Finance repaying investors over time. A earlier plan for a management-led buyout of Strategic Finance that was funded by Bank of Scotland International (BOS Intl) collapsed last month and any further plans may be complicated by the collapse of Allco, the ultimate owner of Strategic. "The current proposal for consideration by the trustee is a management led moratorium "“ the details of which are being worked with an initial term sheet on this having been provided to the trustee," Finnigan said, adding that Perpetual had employed PricewaterhouseCoopers to review the plan and other options including receivership. "The trustee has requested that PWC is engaged (by them) to provide an opinion on this proposal and they will no doubt consider the merits of the proposed moratorium versus receivership," Finnigan said. " We would expect that investors should receive the relevant information/ explanatory information and get to vote on any proposal prior to Christmas," he said. Meanwhile Finnigan told the New Zealand Herald investors should eventually receive full repayment. "If we're forced to sell things and act inappropriately, there may be some potential for loss. At the moment all the numbers are indicating that investors should receive full repayment," he was quoted as saying. * This article was first published exclusively yesterday 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.