Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

St Laurence receivers get nothing from Podmore bankruptcy

St Laurence receivership to wrap up with nothing from Podmore bankruptcy

By Paul McBeth

Dec. 24 (BusinessDesk) - The receivership of failed lender St Laurence will probably wrap up with the last repayment to investors in March next year though nothing will have emerged from former boss Kevin Podmore's bankruptcy and his $20 million personal guarantee.

Receivers Barry Jordan and David Vance of Deloitte are working to dispose of the firm's last loan over a recycling operation in New South Wales, though they didn't get anything substantial from the guarantee made by Podmore and backed by three of his companies, according to their latest report.

"Whilst we have made some minor recoveries from one liquidation, we have not factored into our realisation estimate any recovery from Mr Podmore's bankruptcy," the report said.

Jordan and Vance expect to pay 2 cents in the dollar to investors in March next year in a final distribution to some 9,431 debenture holders who put $212 million into the lender.

That distribution will take the total repayments to about 16 cents in the dollar since the receivership in 2008, on top of the 10 cents investors managed to get from St Laurence's abandoned moratorium.

That's the lower end of the 15 cents to 22 cents range they had originally expected, and means there won't be any distribution for some $43 million of accrued interest or any amounts available for unsecured creditors including the capital note holders.

St Laurence was sent to the receivers after Podmore went against the trustee’s wishes by making an offer to debenture holders to swap their debt for equity in a new company that would hold the remaining assets.

Investors had previously agreed to a deferred repayment scheme, where 70 percent of the firm's debentures would be repaid by 2013 and the remaining 30 percent by 2021. Under that moratorium arrangement, note holders would have eventually been repaid by 2034.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO: