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Thursday 26th June 2008 |
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The stock fell to 10 cents from 21 cents yesterday, when the plans were announced. The move follows a similar announcement from 25%-owned St Lawrence this week.
Dorchester chairman Barry Graham yesterday said the company will withdraw its prospectus and seek approval to defer payments on debentures.
"As a result of the rapid decline in the property finance market and a continuing fall in reinvestment rates the board has formed the view that there is now a risk of a cash flow shortfall arising in future months," told the Sharechat website yesterday.
The company, which owes debenture holders NZ$168 million secured against total assets of $212 million, has hired Grant Samuel and Associates as an independent adviser.
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