KEY POINTS:
Strategic Finance investors are going to have to wait for interest and dividend payments as the company works on a capital restructure proposal.
Last month Strategic suspended redemptions, affecting 15,000 investors with $325 million of funds.
At the start of this month it was announced that an agreement had been reached for the sale by Australian investment company Allco HIT of all the shares in Strategic.
Today Strategic said it was continuing to work on its plan to submit a capital restructure proposal to securityholders.
To ensure that all securityholders were treated equally ahead of the restructure, the company said it would not be making interest payments payable next Monday in respect of debenture stock, subordinated notes and deposits.
The company would also not be paying the next dividend payable on perpetual preference shares on October 15.
Trustee Perpetual Trust had required the company take that action on the grounds that it was fair to all securityholders, Strategic said.
It was intended that if the proposed capital restructure was approved and implemented and the proposed sale of Strategic was completed, then any unpaid dividends and interest would be paid to securityholders.
That would happen within a "short period" after implementation of the capital restructure and completion of the sale.
- NZPA
