Published 3 May 2011
Irongate Property Ltd (ex-St Laurence Property & Finance Ltd) said today it had asked its trustee to appoint a receiver because it was still unable to remedy the breach of 2 trust deed ratios and couldn’t pay money due to bondholders on 15 May.
Perpetual Trust Ltd told Irongate at the end of last year it wouldn’t grant a waiver of the breaches, but also wouldn’t do anything about it immediately. Irongate, meanwhile, worked on selling assets and trying to raise capital.
Irongate’s manager, St Laurence Funds Management Ltd, told the Irongate board it had been unable to raise enough capital or sell enough assets to enable it to remedy the ratio breaches or pay the bondholders. Accordingly, Irongate asked Perpetual to appoint a receiver in respect of the whole of its undertaking & assets. Irongate chairman Kevin Podmore said: “It’s extremely disappointing that the manager’s attempts to raise new equity have been unsuccessful. The moribund commercial property market has not been helpful. The manager has, however, been able to put in place sale contracts which should result in a significant de-gearing of the balance sheet and repayment of much of its senior debt, placing bondholders & shareholders in a better position."
Irongate also sold $37 million of property assets in the September half, applying most of the proceeds to the repayment of debt. It cut borrowings from $156 million in March to $133 million in September, but the debt level was still 68% of total assets.
13 December 2010: Perpetual won’t grant Irongate a waiver, but isn’t acting on it yet
1 December 2010: Irongate reduces loss, breaches deed, uncertain on next bond payment
1 November 2010: Irongate gets waivers to defer bank repayment
20 October 2010: Irongate seeks waivers for breach
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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.