Strategic not making interest payment (updated)

Strategic Finance announced that it will not be making the interest payment payable on 15 September 2008 in respect of debenture stock, subordinated notes and deposits. (Updated to include quote on current intentions) Strategic also announced that they will not pay the next dividend payable on the perpetual preference shares on 15 October 2008. "Perpetual Trust Limited, the trustee under Strategic Finance Limited's debenture trust deed, has required that the company take this action on the grounds that it is fair to all security holders," Strategic Finance CEO Kerry Finnigan said. "The decision not to pay the forthcoming perpetual preference share dividend has been made in accordance with the terms of issue of the perpetual preference shares which allow the board to elect not to pay a dividend if, before the relevant dividend payment date, the board of Strategic Finance ceases to be satisfied on reasonable grounds that the company will, immediately after paying the dividend, satisfy the solvency test set out in the Companies Act 1993," he said. "While the terms of the proposed capital restructure have yet to be finalised, the current intention is that if the proposed capital restructure is approved and implemented and the proposed sale of Strategic Finance is completed, then any unpaid dividends on the perpetual preference shares and unpaid interest on the debenture stock, subordinated notes and deposits will be paid to security holders within a short period after implementation of the capital restructure and completion of the sale," said Finnigan.