Structured Finance in part payout
Failed property lender Structured Finance will pay some of its investors 25c in the dollar after they voted to accept a settlement offer from the company's owner.
But the deal excluded the bulk of debenture stock, casting doubt on potential recoveries for investors in defunct First Step funds owed close to $30 million.
Structured Finance, owned by interests associated with Auckland financier Martyn Reesby, owed debenture investors about $32.7 million after defaulting on its debts in May 2009.
The company has failed to meet any of its scheduled repayments under a moratorium agreement, which should have returned 60c in the dollar, and the final due date was extended to October 31 this year - today.
The 25c offer, which excludes interest due, was made only to public investors owning about 10 per cent of the debentures.
The other 90 per cent is owed to investors in the First Step fund structure marketed by failed advisory firm Money Managers and frozen in 2006.
Structured Finance's trustee, Foundation, told BusinessDay it was up to First Step's trustee to decide what to do with its stock. Fairfax NZ