No news from Irongate Property
I have checked with Computershare and learnt that no instruction has been received regarding the payment of interest on or principal of STL030 bonds, due on May 15. Payment of interest on the bonds was normally announced many weeks before the date of payment.
The Trust required concrete plans for repayment of the bonds by the beginning of April. As nothing has been announced the plans seem have not been finalised. I assume there is a plan and I do not regard default as a plan.
I doubt bondholders would know the fate of their bonds before Friday May 13. Hope it is not a black Friday for bondholders.
The first receiver's report would be available in about 2 weeks time
Quote:
Originally Posted by
winner69
Brochure in this mornings mail - receivership sale - Bayley's
Vacant
It seems that Irongate Property did not have sale contracts in place, as Mr Kevin Podmore claimed on the day of receivership. The property in Queenstown is probably the only building under conditional contract. 139 Quay St is on recevership tender now.
It would take a long time for bond holders to get a part of their money back. Empty building, warehouse, and land are difficult to sell unless on a huge discount. Bond holders could easily lose a quarter or a third of their original investment.
Updates to Bondholders from Receivers, First repayment of principal
Updates to Bondholders from Deloitte on the Irongate Property receivership can be found at http://www.deloitte.com/nz/irongate.
Bondholders received the first repayment of principal from the receivers of 22c in the dollar, on 14 October.
From the letter to bondholders dated 6 October:
Further distributions
In our initial letter we provided a distribution range of between 67 cents and 84 cents in the dollar of principal to secured debenture stock holders over the next 1- 1½ years. As previously advised there is an investment in a property development in Australia which Irongate has a 2nd mortgage security that is likely to take at least 2 years before any funds may start to be recovered. The level of recovery from this particular asset remains very uncertain.
We do not expect there to be any funds available for the repayment of interest to secured debenture stock holders, or of Irongate unsecured creditors and shareholders.
Based on the current progress and realisations to date we have retained this realisation range.
It is estimated that a second distribution will be made by late February 2012 or early March 2012. The timing of this realisation will be determined by when the sales complete of the remaining larger assets.