Strategic finds best bidder but receivership still option

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

Strategic Finance has narrowed its takeover talks to a single bidder but its trustee has not ruled out placing the company into receivership.

The finance company has been in discussions with its trustee since January after it breached the terms of its moratorium by failing to make an initial repayment to its 15,000 retail investors who are owed about $325 million.

The moratorium was further placed in jeopardy when the company disclosed it had been forced to write down the value of its remaining assets to below 75 per cent of its liabilities.

On Monday Strategic released unaudited figures for the six months to December 31 showing an after-tax trading loss of $99.8 million and a net loss after tax of $32.8 million.

Matthew Lancaster, head of Corporate Trust, a subsidiary of trustee company Perpetual, said he expected to make a call by the end of next week on whether it would accept an offer from a potential bidder.

"It is likely to be towards the end of next week before we will have made our decision.

"The information that is being provided is part of [the] best offer the company [Strategic] has been able to come up with.

"It is quite detailed and needs a lot of analysis and we may also find out we need more information."

Lancaster would not confirm who the bidder was but said there had initially been a handful of offers.

"From those Strategic has determined what is the best offer."

But he did not guarantee the company would be kept from receivership.

Lancaster said it was still considering other options which included continuing in moratorium or receivership.

The deal is expected to be similar to the debt for equity swap agreement reached between Allied Farmers and Hanover.