30 Jun 2009

Debenture holders approve new repayment plan

5:50 am on 30 June 2009

Property Finance Securities debenture holders have voted in favour of a new wind-down plan.

Just over 95% of stockholders have agreed to be repaid at a lower interest rate, reducing it from 9.33% to the Reserve Bank's key interest rate plus 2%, and to forgive unpaid interest to date.

In April, Property Finance Securities applied for a High Court injunction to stop Covenant Trustees from calling in the receivers before it held a meeting for stockholders to vote on the revised moratorium.

Covenant Trustees managing director Graeme Miller says important changes were made to the revised moratorium, including appointing a financial advisor to manage the wind-down.

Under the wind-down, he says stockholders are likely to be repaid $1.23 - all of their principal and 23 cents interest - while under receivership they would receive only $1.14.

Property Finance Securities, a subsidiary of the listed Property Finance Group, owes $70 million to about 2400 investors.

PFG says it plans to file its preliminary results for the March year as soon as possible.