Strategic Finance moratorium approved

Strategic Finance Ltd's moratorium proposal has been approved at a meeting in Wellington today.

Strategic said the moratorium was supported by 98.56 per cent of debenture stockholders who voted, 100 per cent of depositors and 98.88 per cent of noteholders.

Ahead of the meeting the company said that proxies were running in favour of the proposal.

"Strategic will now commence implementation of the moratorium," the company said.

Dorchester Pacific and Hanover Finance also had plans approved at meetings in this month.

Strategic froze repayments to 15,000 investors owed $325 million in August.

The company sought approval for a managed wind-down of its loan book as an alternative to receivership, saying that stockholders would receive higher payments than under a receivership.

Under the plan, Strategic Finance would make quarterly repayments of principal and interest through to December 2013, subject to the availability of funds as assets are sold.

PricewaterhouseCoopers would be appointed as monitoring accountant during the moratorium.

- NZPA