Strategic warns on repayment

One of Strategic Finance's property investments included the Soho Square development in Auckland's Ponsonby. Photo / Steven McNicholl

Strategic Finance has warned investors not to rely on receiving a payment due next month as part of the finance firm's moratorium plan.

Strategic, which owes 15,000 investors $325 million, entered a moratorium last December agreeing to pay back the money over five years. The company is due to make its first payment on January 7, but in a letter to investors yesterday, chairman Denis Thorn said this depended on the company being able to recover "a number of specific loans".

"Please do not rely on this payment being made in part or in full as our ability to do so is entirely based on loans being repaid over the next few weeks."

Thorn said if the target date for repayment was missed, Strategic Finance's trustee would be alerted.