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After months of delays, 9000 investors owed $250 million by property financier St Laurence will finally get to see the company's restructuring proposal and will vote on the plan early next month.
However the plan, which will see up to $30 million in additional equity injected into the
company, will require investors to wait at least five years before they are fully repaid their principal.
The company yesterday said it had registered a prospectus which outlines the plan and information was to be mailed to investors this week.
St Laurence managing director Kevin Podmore said the plan would see his company "to continue trading on a going concern basis", provide time for orderly repayment of loans, and allow it "to undertake activities to preserve and add value to the group's funds management businesses".
"The directors believe it is a better alternative for investors than receivership," he said.
Podmore said his company intended to repay investors 100 per cent of their principal plus accrued interest.
"We are not sure how long that will take us but over the next five years we are aiming to have repaid at least 70 per cent of the debentures and 20 per cent of the capital notes as well as 70 per cent of the interest accrued on debentures."
Podmore told the Business Herald the remaining 30 per cent would be repaid as market conditions improve and the company is in a position to take advantage of lending, funding and funds management opportunities.
"We can't confirm a definite timeframe at this stage as it depends on market conditions, but we remain committed to full repayment."
If investors accept the plan in a vote on December 5, St Laurence's majority owner, Podmore's Auguste Finance, will transfer "property-related assets ... which are assessed by the directors to have a net value of $10 million" to the company.
In addition, Podmore and "related parties" would provide a $20 million guarantee to debenture holders "that is available in certain circumstances".
Podmore said the guarantee could be called on if St Laurence is placed in receivership or liquidation and is in a position where it is "unable to pay due to a shortfall on realisation of the assets".
St Laurence, which primarily lent to property developers, froze repayments to investors in June this year and said it hoped to have a recapitalisation proposal out to investors by late August or early September.
