dividend revoked

What happens to people that have sold their DRP shares already? Do they have to buy them back and give them to CIY?? I suppose that's one way of propping up the sp when the suspension is finally lifted, but it's a really messy fiasco imho. Worthy of an ASIC investigation.

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ASX Release 23 March 2009
City Pacific Limited (CIY)
DIVIDEND REINVESTMENT PLAN SHARE ALLOCATION ADJUSTMENT AND
REVOCATION OF INTERIM DIVIDEND
DRP Share number adjustment
City Pacific Limited (City Pacific or the Company) has, over the past three months,
undertaken the statutory review of its half year accounts for the six month period ending 31
December 2008. During the course of the review City Pacific determined, in conjunction with
its advisors, that an administrative error had occurred in respect to the April 2008 issue of
Dividend Reinvestment Plan (DRP) shares. Namely, that a greater number of shares had
been allocated to shareholders under the DRP than they were entitled to.
This error occurred as a result of City Pacific paying DRP participants an interim dividend to
the value of 15 cents per share in April 2008 when only the paid amount of the interim
dividend (3 cents per share) should have been applied.
As a result, City Pacific has no alternative but to scale back the number of shares DRP
participants received under the April 2008 allocation to reflect the value of the actual
dividend paid on 30 May 2008 being 3 cents per share. This means DRP participants are
entitled to 1/5th of the DRP shares they were initially issued. Those DRP shareholders who
are affected will have their holdings scaled back and will soon receive, by mail, amended
holding and dividend statements.
City Pacific regrets this error and apologises to affected shareholders. It advises
shareholders that DRP processes have been reviewed and modified to ensure that this error
is not repeated. City Pacific recommends that those DRP shareholders affected consult their
accountant in respect to these changes.
The Company has today lodged an amended Appendix 3B to reflect the correction of this
error.
Revocation of interim dividend
On 19 November 2008, the Board of City Pacific advised that they had resolved to defer the
interim dividend final instalment payment date until further notice. In consultation with the
Company’s advisors, the Board of City Pacific have resolved to revoke the final instalment of
the 12 cent interim dividend. This decision was based on the premise that City Pacific will
continue to apply all available funds received through the usual operations of the Company
to reduce the corporate facility and to meet ongoing operational expenses.
END
For media enquiries contact:
Angus Urquhart
Hintons
03 9600 1979
0402 575 684
For investor enquiries contact:
Lee Danahay
City Pacific Limited
07 55540 200