IMP

Updates

 
 
28 November 2008
 
On the 27th November 2008 the management of IMP held a meeting for debenture holders to address a breach in the IMP Trust Deed and to enable a non-cash distribution to be made to debenture holders.
 
The impairment of one of the IMP loans had placed the fund in breach of its total assets to total liabilities ratio as documented in its Trust Deed. This event required IMP management to come back to debenture holders for approval to amend the Trust Deed in order for the moratorium to continue.
 
IMP had also proposed that in lieu of a cash distribution they instead transfer ownership of shares in Investment Research Group (IRG), an NZX listed entity, to stockholders.  Our Investment Committee reviewed the proposal supplied by IMP and recommended a continuation of the moratorium as this was considered to be in the best interests of debenture holders.   While our overwhelming preference would be to see cash returned to clients instead of shares, in this particular instance we believe a distribution delivers more value to an IMP stockholder.
 
At the meeting the resolutions were approved with 92.5% of the vote in favour.

  •       The result of the vote allows IMP to stay in moratorium thus avoiding receivership.  Continuing the moratorium will allow the orderly wind-down of the IMP assets over time, delivering as much recoverable value as possible back to debenture holders while minimizing costs. 
  •        The distribution of the IRG stock is expected to be made to debenture holders over the next two weeks.  This will then be processed by Aegis and is expected to show in your portfolio valuations by mid December.  The distribution will be the equivalent of a 3c in the dollar capital repayment which increases the amount IMP have returned to debenture holders to 40c in the dollar
Please click here for a media release from the management of the Investment Research Group
 
November 2008
 

The impairment of one of the IMP loans has placed the fund in breach of its total assets to total liabilities ratio as documented in its Trust Deed. This event has required IMP management to come back to debenture holders for approval to amend the Trust Deed in order for the moratorium to continue.

 

IMP are also proposing that in lieu of a cash distribution they instead transfer ownership of shares in Investment Research Group (IRG) to stockholders.  The distribution will be made on a pro rata basis and has a total value to stockholders of approximately 3c per dollar of the IMP debenture face value.  Please read the section titled ‘Repayment of principal by distribution of securities’ in the explanatory notes enclosed for further detail of this proposal.

 

The Gould Wealth Management Investment Committee has reviewed the proposal supplied by IMP and believes that a continuation of the moratorium is still in the best interests of debenture holders.  Continuing the moratorium will allow the orderly wind-down of the IMP assets over time, delivering as much recoverable value as possible back to you while minimizing costs. To date, IMP has returned 37c in the dollar to investors. Whilst our overwhelming preference would be to see cash returned to clients instead of scrip, in this particular instance we believe a distribution delivers more value to an IMP stockholder.

 

IMP has taken independent legal advice and has been in consultation with the company’s trustee on the issue. In addition to this, the company has appointed a monitoring accountant to oversee the wind-down process. 
 
Please click here for a copy of the letter GWM has sent to clients
Please click here for a copy of the IMP proposal
 
 
3 October 2008
 
IMP have made a $0.17 payment today which will filter through into Aegis accounts over the next few days.
 
28 July 2008
 
We remain in regular contact with Craig Priscott who is managing the moratorium for IMP, the recent initial payment of $0.20c on the 11 July 2008 is seen as a good first step.  We will provide further updates as information becomes available.  
 
For full details of the Moratorium please click here