Three month wait for Chase

Press, 31 August 1989, Page 37

Three month wait for Chase

NZPA-AAP Sydney The embattled New Zealand property and investment group, Chase Corporation, is expected to take at least three months to prepare a detailed debt restructuring proposal. The chairman, Mr Colin Reynolds, said yesterday he was “heartened” by a decision by Swiss bond and note holders not to

call their units into default before June, 1990. Earlier this year, Chase admitted it faced serious financial difficulties and announced a major asset sale in Australia and New Zealand. The Swiss meeting, held in Geneva last Friday, was a major hurdle for the company to avoid being placed in liquidation.

It was called by the agent, SG Warburg Soditic SA, with the holders of interests valued at 240 million Swiss francs. Mr Reynolds described the result as “unanimous.” At earlier meetings, holders of U.S. dollar Eurobonds in London and Geneva agreed to give Chase time to submit liability restructuring plans to secured lenders to the

group. Mr Reynolds, the finance director, Mr John Clarke, and the financial adviser, Mr Alex Macintosh, discussed with bond holders plans to sell down assets and reduce the size of the company. A furthur meeting with Eurobond and Swiss bond and note holders will be held later this year.