MFS New Zealand Limited MFN 11 Feb, 2008, 17:09 GENERAL Business Update Full Text of Announcement Proposed Moratorium
The directors of MFS Pacific Finance Limited ("MFS Pacific" or "Company") today advise that the Company has embarked on the steps necessary to seek Investors' approval of a Moratorium Arrangement (the "Moratorium"). The Moratorium will allow MFS Pacific to conduct an orderly realisation of its loans and investments but will be subject to approval by Investors and to obtaining any other necessary regulatory approvals.
A critical component of the Moratorium will be an agreement with MFS Limited around its future funding of MFS Pacific, which will include an initial cash payment from MFS Limited to MFS Pacific upon the completion of the sale of 65% of Stella. The amount of that initial payment and the process for subsequent payments is currently being negotiated and will be detailed in the Moratorium documentation provided to Investors.
The Trustee has been advised of the Company's intentions and continues to work with the Company and its advisers to achieve the best outcome for Investors.
We believe it is clear that the Moratorium, coupled with an agreement with MFS Limited around its future funding of MFS Pacific, will result in significantly improved returns for Investors than may otherwise have been available.
MFS Pacific is currently preparing the necessary legal and financial documentation and will dispatch that documentation to Investors as quickly as possible. The documentation will provide Investors with full details of the Moratorium, including the timing of it and the processes involved. The Company is aiming to hold a meeting of Investors in early March.
Further information will be made available once the final terms of the Moratorium are agreed to by the necessary parties and the documentation can be dispatched to Investors.
MFS Price at posting:
0.0¢ Sentiment: Sell Disclosure: Held
