KEY POINTS:
Dorchester Pacific has announced to the NZX it will undertake an "immediate review" of the potential impact of St Laurence's decision yesterday to cease lending.
St Laurence has also proposed a schedule for delayed payment of NZ$241 million in investors' debentures.
Dorchester Pacific owns a 25 per cent stake in St Laurence.
The shock news of St Laurence's departure from the lending market and Dominion Finance's default on payments has surprised many debenture investors, particularly those in finance companies exposed to the residential investment or resort property markets.
Dorchester Pacific, formerly founded by Brent King, is an NZX listed finance company with about NZ$200 million of loans, including NZ$80 million of property lending, NZ$80 million of motor vehicle lending and NZ$40 million of consumer lending.
Dorchester Chairman Barry Graham told interest.co.nz less than 10 per cent of the property lending (NZ$8 million) was to property developers in capitalising loans.
- INTEREST.CO.NZ
