Client Update
Distressed Finance Company Update - July 2009
Please click here to view the latest update in pdf.
Distressed Finance Company Update - April 2009
Payments
Revaluations
OPI Pacific Finance- The company debentures have been re-valued down by Aegis to 51c for the secured debentures and 1c for the unsecured in order to reflect a more realistic approximation of latent value. The primary rationale for the re-valuation is to reflect the much reduced likelihood of a substantial capital re-payment becoming available to debenture holders through the ‘put’ facility with Australian domiciled Octaviar Ltd. In addition the expect repayment following the entering into of a Deed of Company Arrangement by Octaviar has been delayed due to court action by the Queensland Public Trustee. Further court action is expected in early May.
Receiver/Trustee/Management Updates.
ING DIF/RIF- ING updated unit holders with a new proposal during March. Subject to a successful vote at a meeting, unit holders will now elect to receive a cash payment of 60c per unit or approximately 85c per unit in five years. A timeline of relevant events for a unit holder is presented below;
Once we have more information to hand, we will provide an update with our opinion on the merits of the offer.
Cymbis Australia- PWC, the Administrators of the company delivered an updated report to debenture holders on the 5th March. As at the date of the report approximately 90% of the loan book was in default and the mortgage indemnity insurance broker had been advised of the status of these loans. In the previous update late last year, the receiver had indicated a potential payment could occur in February however some forecast repayments did not occur as scheduled delaying payment. The full report is available to debenture holders at www.pwcrecovery.com
Diversified Mortgage Trust “B” Notes- The Manager and the Trustee of this trust filed joint update reports in March. The Trustee has given the trust till the 30th June 2009 to repay all capital plus accrued interest on these notes. The rationale for the stay being that due to the current economic climate, the trusts underlying borrowers need more time to re-finance, subject to the trustees oversight. Praesidium Asset Management (the trust’s manager) has also stated that lodgment of claims under the trusts Lloyds insurance indemnity scheme are now well advanced.
Boston Finance- Korda Mentha issued an update on the progress of Boston Finance (under moratorium) during March. Collections of the Boston loan portfolio have been significantly slower than originally forecast in the moratorium proposal. Boston company directors have made bad debt provisions on some loans and it is likely that more will follow.
At this point in time, Korda Mentha states that it is hard to quantify the ultimate realization value of the Boston loan book, but that the Boston directors inform them that a more accurate forecast realization schedule may be available by June 2009. Korda Mentha is now also of the view that a repayment of the remaining Boston loan portfolio is unlikely to be realized within the 20 month moratorium period.
Propertyfinance- The company is currently working towards presenting a moratorium re-structure proposal to debenture holders. Exact details were not available at the time of this publication but are expected to be delivered in the 2nd quarter of this year.
Below are summarised updates which we have sent to clients.
For further information please select the appropriate company:
For further information please contact your Adviser or call GWM on 0508 837 827.
