Property Finance Group (PFG), the parent company of Property Finance Securities Limited (PFSL) has made an announcement proposing a group wide capaital restructure and merger proposal.
The PFSL business will be merged with PFG and;
- Be listed on the NZ Stock Exchange,
- Have no debt,
- Have over 3,500 shareholders,
- Be registered as a tax efficient PIE
The proposed restructure will be presented to debenture holders at a formal meeting and the details will be set out in a registered prospectus. PFG are aiming to have this process concluded as quickly as possible over the next quarter.
What the restructure means for stockholders is that they will exchange their existing debenture stock for a mixture of cash (paid to date): short term preference shares to be repaid from current projects and new ordinary shares in PFG. Post this restructure the PFSL debenture holders will own approximately 90% of the new company. The shares will be freely tradable and have regular dividends on a tax efficient basis.
Propertyfinance intend to provide a further Briefing Note in February 09 that will set out a full update on the Company’s current projects/loans and expected distributions from these.
8 January 2009
Propertyfinance has released a December update which follows on from the below, in essence apologising for the delay in the repayment plan and clarifying the next steps that the company will be taking. Please click here for the full update.
We will inform all clients as soon as we receive details of the proposed meeting and any details of Propertyfinances intentions.
A newspaper article this morning in the NBR has stated that there will be no further payment by Propertyfinance this year despite a requirement to pay a further $7.8m by 21 December 2008. Please click here for a copy of the NZX release.
Darryl McQueen, Managing Director of Propertyfinance has provided the following October update on the progress of PropertyFinance's restructure programme. Please click here to view.
29 September 2008 Update
Darryl McQueen, Managing Director of Propertyfinance has provided the following September update on the progress of PropertyFinance's restructure programme. Please click here to view.
11 July 2008 Update
Darryl McQueen, Managing Director of Propertyfinance has provided the following update today on the progress of PropertyFinance's restructure programme.
The key summary points are:
- The Company is continuing to make steady progress with its restructure
- A further payment of 2¢ was made on 7 July 2008. In total this payment, combined with earlier payments, means that the Company has repaid some $7.1 million (9¢) year to date and remains on track to meet principal repayments of $15 million (18.8¢) in debenture stock in the first year.
- Whilst this quarter’s payment is at the lower end of our initial forecast this relates to normal delays with some loans being repaid and our desire to hold funds so that we can proactively work with clients to maximise overall loan recoveries.
- Property Finance expect to make the balance of this year’s scheduled payments with repayments in September and December.
Propertyfinance are holding a series of meetings around the country beginning on 17 July in Palmerston North and culminating in New Plymouth on the 23rdof July. The meetings are billed as an opportunity for the Company to update investors on the restructure; what it means; the current position of the Company; and its future plans. There is no new information per se; it is simply a general catch up and an offer for investors to address any queries they may have. If you want to know when your local meeting is to be held please contact us or go to the Vestar website for details.
Background
Debenture Stock Holders Information
Vestar has worked hard over the past months to achieve a positive outcome for clients, resulting in Propertyfinance being restructured and removed from receivership on the 18th February 2008. This has seen the rescheduling of the company’s secured debenture stock to a new three year term with an ordinary interest rate of 9.33% and a bonus rate of 0.67%. Interest is paid once Propertyfinance has repaid principal to investors. More information about the interest payments can be found on the links below:
The intention of Propertyfinance in regard to debenture holders is to make regular distributions of principal to investors. The initial payment of 6.2c for each dollar of debenture stock held was paid on the 20 February 2008. A further small distribution of 0.8c was paid on the 27 March 2008, bringing the initial payments to clients of 7c this quarter. This payment is currently with the custodian who is processing the payments and expect this to reach clients over the next few weeks.
Distributions will be made quarterly thereafter (June / September / December / March). The June and September 2008 payments will be in the region of 3 - 5c each.
Shareholder Information
On the 18 April 2008 at the request of Propertyfinance Group (PFG) a trading halt has been placed on its securities, pending the release of the group's unaudited results to 31 March 2008. On the 23 April 2008 the trading halt was lifted following the release of a market update, which can be read by clicking here.
Please note that is the head company and not the company that holds debenture stock holders monies, but is part of the overall group.
