Musical chairs at Genesis Energy as Trustees Executors becomes bond trustee

Friday 8th March 2013

Genesis Energy, the state-owned energy company, has called a meeting of investors in its hybrid bonds to replace the trustee installed by the Financial Markets Authority with the Jim Bolger-chaired Trustees Executors.

In September, the FMA appointed Corporate Trust as trustee for the debt for a period of six months after declining to issue a licence to existing trustee Perpetual Trust. The interim appointment allowed Genesis time to either confirm Corporate Trust in the role for find an alternative.

"After discussions with a number of licensed providers of trustee services, and having undertaken a formal process to evaluate and determine the suitability of each of those service providers, Genesis proposes to appoint Trustee Executors as the new trustee in respect of the bonds," it said in a notice of meeting.

Genesis first flagged its preference last month. Trustees Executors traces its lineage back to 1881.

Corporate Trust, which trades as Foundation Corporate Trust, was created by a management buyout of the trustee business of Pyne Gould Corp. Its sole shareholder is listed as Kim von Lanthen, Perpetual's former risk management executive.

Perpetual's former head of corporate trust Matt Lancaster came across as managing director of Foundation and former Pyne Gould chairman Sam Maling to head its board.

Genesis has $275 million of the 2041 bonds, which pay a coupon of 8.5 percent.

BusinessDesk.co.nz

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