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St Laurence Limited Recapitalisation Plan
Background to the Plan
In June 2008, following a significant and rapid deterioration in the property and finance markets, St Laurence Limited (SLL) withdrew its prospectus and suspended repayments to investors while a strategy was developed to resolve the situation which would be in the best interests of SLL’s Secured Debenture Stock (SDS) and Capital Note investors.
In November 2008 SLL sent to its SDS and Capital Note investors the resulting proposal contained in the Recapitalisation Plan document dated 11 November 2008. This document is available to download and view here and further background information is provided on pages 6 and 7 of this document.
On 5 December 2008 the proposal to vote to amend the Trust Deed for SLL was approved by SLL’s SDS and Capital Note investors. The Resolutions, as put to SDS investors were passed by 95.86%, and as put to Capital Note investors by 99.64%.
What payments have been made to investors since the Plan was approved?
Payments made to date have been:
- 12 December 2008 - SDS interest for the period from 1 July
2008 to 5 December 2008, and Capital Notes interest from 1 May 2008 to 5 December 2008. This covers
the period when SLL was putting together the Recapitalisation Plan and interest was
accruing.
- 1 April 2009 – SDS principal of 2 cents per dollar
and Capital Note principal of 1 cent per dollar.
- 1 July 2009
- SDS principal of 2 cents per dollar and Capital Note principal of 1 cent per dollar.
- 1 October 2009 - SDS principal of 2 cents per dollar and Capital Note
principal of 1 cent per dollar.
- 5 January 2010 - SDS
principal of 2 cents per dollar and Capital Note principal of 1 cent per dollar.
- 1 April 2010 - SDS principal of 2 cents per dollar and Capital Note principal of 1 cent per dollar.
When the Plan was approved were new Certificates issued to investors?
Yes, in late December 2008 existing SDS certificates were replaced with Class A and Class B SDS certificates. Investors therefore received two certificates for each SDS deposit held with us. Capital Note holders did not need a new certificate but received a separate letter confirming their holding at the same time.
Can I transfer my SLL investment?
Yes, upon receipt of completed transfer documentation (available from our office) we can transfer your investment to another person or persons. Please note that if you wish to split your investment between multiple persons, the minimum Class A SDS holding is $700 and the minimum Class B SDS holding is $300. The minimum holding for Capital Notes remains unchanged at $5,000. Exceptions will only be made where principal repayments have resulted in the outstanding principal held by an Investor being less that these amounts.
How does the Plan apply to the Dual Currency Debenture Stock I held?
SLL Dual Currency (NZD/USD) Secured Debenture Stock converted from US dollars into NZ dollars on 31 October 2008 as scheduled at the current spot rate on the date of conversion of $0.595 (or at the rate applicable on the day if an investor selected an earlier conversion date). The Dual Currency Debenture Stock is now incorporated into the NZD Debenture Stock registry and the same principal repayments and interest accruals apply (refer page 11 of the Plan document).
If the above information does not answer your queries please email our Client Services team at office@stlaurence.co.nz