St Laurence investors updated by receivers

St Laurence investors updated by receivers

The receivers for St Laurence Limited and six of its subsidiaries have written to investors with an update on progress since they were appointed by Perpetual Trust on April 29 2010.

The letter, from receivers Barry Jordan and David Vance of Deloitte, outlined what work been done so far to recover funds for investors, an assessment of any likely asset realisations and the anticipated level and timing of any distributions to investors.

The receivers have provided investors with an estimated outcome that is as reliable as possible subject to the uncertainties inherent in the property market and the already impaired state of the St Laurence loan book.

The current best assessment indicates that secured debenture holders can expect to receive a distribution of between 15 cents and 22 cents in the dollar over the next 18 months. It will be subject to securing an orderly realisation of the remaining management contracts, sale of the National Property Trust units and no further adverse movements in the property sector.

In addition to the estimated range above, the receivers will also pursue the guarantees provided in 2008, however under the terms of these guarantees they can only be called 15 months after the receivers were appointed.

This expected distribution is in addition to the 10 cents in the dollar paid out to debenture holders under the moratorium repayment programme prior to St Laurence going into receivership.

It is not expected that there will be any funds available for the repayment of interest to secured debenture stock holders or for the repayment of the capital notes or any St Laurence unsecured creditors.

The next communication to investors is scheduled for December 2010, which will provide an update on the receivership progress and the timing of any proposed distributions.

At this stage, the receivers hope to be in a position to make an initial distribution in January 2011.

The receivership covers St Laurence Limited, Direct Property Investments Limited, SL Five Star Hotel Investments Limited, St Laurence Lending Limited, St Laurence No. 2 Limited, St Laurence No. 3 Limited, and St Laurence Realty Limited.

It does not involve Irongate Property Limited, St Laurence Property Development Fund, or Direct Property Investments No. 6 Limited.

Information on the receivership is available at www.deloitte.com/nz/stlaurenceltd. Investor questions relating to the receivership can be sent via the website or directly to stlaurence@deloitte.co.nz or by calling the information free phone 0800 ST LAUR (0800 785 287).

The first receiver’s report will be available on the website today.

ENDS

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