As a shareholder who was dumb enough to buy into DPC I am @#$% pissed off!!!!
I cant wait till AGM, gonna give them hell. I dont give a rats ass if I get thrown out of the AGM!!
As a shareholder who was dumb enough to buy into DPC I am @#$% pissed off!!!!
I cant wait till AGM, gonna give them hell. I dont give a rats ass if I get thrown out of the AGM!!
Is DPC in the list of the finance companies guaranteed by the RB?
Not at the moment (as posted on Finance Coys thread):
Business Day
DPC
26/11/2008
GENERAL
REL: 1612 HRS Dorchester Pacific Limited
GENERAL: DPC: DORCHESTER ADVISES DETAILS OF 3 YEAR REPAYMENT
26 November 2008
Company Announcement
DORCHESTER ADVISES DETAILS OF 3 YEAR REPAYMENT PLAN FOR DEBENTURE
STOCKHOLDERS AND NOTEHOLDERS
Dorchester Pacific has announced details of the Deferred Repayment Plan for
Dorchester Finance investors. Investors will vote on the plan on 17 December
2008.
Under the Plan, Secured Debenture Stockholders would be repaid their $164
million principal in 12 payments over 3 years with an initial payment of 20%
prior to Christmas, followed by 10 quarterly payments of between 5% and 7.5%
and a final payment of 17.5% on 30 September 2011. Unsecured Noteholders
owed $8m would be repaid in two instalments with an initial payment of 10%
prior to Christmas and a final payment of 90% on 30 September 2011.
No accrued or future interest would be payable to investors but secured
Debenture Stockholders would participate in a profit share payment of 50% at
the end of the 3 years.
Details of the Plan will be mailed to investors on 30 November 2008 and a
number of Investor Roadshows will be held around the country between the 6
and 12 December before the meeting to vote on the Plan to be held in Auckland
on 17 December 2008.
If the Deferred Repayment Plan is approved PricewaterhouseCoopers will be
appointed Monitoring Manager to monitor progress over the 3 year term of the
Plan.
Chairman, Barry Graham commented: "We appreciate that the delay in finalising
the Deferred Repayment Plan has been frustrating for investors. But the time
taken has been very well spent in consulting and working closely with the
Trustees and with a number of expert independent advisors. So, we are
especially pleased that we have been able to finalise the Plan in time for a
vote and the prospect of an initial payment prior to Christmas.
"The outcome contemplated by the Plan is dependent on the performance of and
volatility in the economy, particularly in the property market.
"The Board considers that the Plan provides benefits and options which would
not be available under a receivership or in a liquidation. Under the plan
the business will continue to operate as a going concern. Key management
will be able to be retained and loans will be able to be realised in an
orderly way. This would give the Dorchester Group the time needed to
restructure its balance sheet, raise new equity, secure wholesale funding
lines, and participate in any industry consolidation that may eventuate
within the finance sector."
Executive Director, Paul Byrnes commented: "The focus of the Plan is to
return principal to investors as quickly as possible. The business will
continue to operate as a going concern but on a much reduced scale. No new
lending on property will be undertaken over the term of the Plan. Consumer
lending will be restricted under lending covenants in the Plan and will also
be subject to a new Lending and Credit Policy recently developed and supplied
to the Trustees. In developing the Plan a no-new-lending option was modelled
but the Board believes that a no-new-lending scenario is simply not viable.
"Staff numbers within the Dorchester Group have been reduced by approximately
30 over the last few months and a significantly lower salary, wages and
overhead cost base has been achieved. The executive team has been reduced
from 6 to 2. Further work is continuing on simplifying the structure of the
organisation with the objective of minimising overheads and operating
expenses."
Mr Byrnes noted that "while restructuring of the business and development of
the Deferred Repayment Plan over the last 3 months has been hugely time
consuming our focus and priority has remained on management of receivables
and the company's cash position. Despite the deteriorating market we have
managed to exceed our cash position projections. This has enabled us to
increase the first repayment of principal from an originally proposed 15% to
20% of principal for secured Debenture Stockholders.
"Realisation of the property loan book is where the biggest uncertainty lies.
The advantage of the Deferred Repayment Plan is that it will allow time for
an orderly realisation of these assets. The alternative of a receivership is
unlikely to maximise return for investors. Forced sales and the stigma of
receivership, and its effect on counter party behaviour, would likely lead to
lower realisations than under the Deferred Repayment Plan.
"The Board believes that in the current economic circumstances the Deferred
Repayment Plan would provide a materially better outcome than the alternative
of receivership or liquidation."
ENDS
Belgarion is management going to be tossed out in February
Belgarion Question
Writing is on the wall and the engraver is nearly finished with the headstone...its about the point where he is writing R.I.P
I sold this stock at a tad over $2.50 after buying at $2.80. I did hear from the inside that this was in trouble early last year. A lot linked to the property sector especially in Queenstown.
This was one stock i kept warning people many times last year and it was only a mattewr of time
I would even go as far as to say that dpc completely mislead investors by implying that they the company was in a good position with plenty of cash reserves. i.e $30m in cash equivilent. I see this as a criminal offence imo ande hope someone is hung out to dry
Exactly, its a special meeting.... people look up your company law!
They need 75% support for it to go into effect. The question is though, who called it?
Who is going to the meeting tomorrow
Executive announces interest repayment on track! Sorry it is 6months or more late. Meanwhile 95% of shareholder value lost in a year. And the Chairman & board largely remain. What a bunch of leeches
I see that the Dunedin office has been terminated. With the building available for lease, I would assume that the premises were rented and not owned by DPC.
At least they are paying the investors back...
Hello- where are we heading now. The Bakery buy a big stake. If anything it may be an intersting ride. Or is this just some swapping of share/cash with no relevance?
https://www.directbroking.co.nz/Dire...spx?id=2306262