Media information
Embargoed to 5.00pm, 18 September 2008
Hanover Shareholders Update On Debt Restructure
Mark Hotchin and Eric Watson, the shareholders of Hanover Finance Limited, United Finance Limited and Hanover Capital
Limited today confirmed that, after working closely with company management, the trustees and advisors, a detailed debt
restructure proposal is expected to be finalised and presented to the trustees soon. Once approved, it is expected this
will be mailed to investors in early October.
It is anticipated that an investor meeting to vote on the proposal will be held in late October.
The debt restructure proposal will include shareholder support of up to $96 million, to be provided in cash and property
assets, in addition to the existing total equity in Hanover Finance of $64.9 million as at the year ended 30 June 2008.
All equity ranks behind the secured debenture holders funds.
Mark Hotchin said today that the package is a significant indication of the shareholders’ willingness to stand behind
the business and achieve the best outcome for investors.
“We want to see Hanover in a position where it continues to trade through this difficult part of the cycle, and we
believe the proposal, which puts a priority on returning capital, will return 100 cents in the dollar to first ranking
debenture holders”.
“Certain terms of the restructure are still being finalised with the shareholders, trustees and their advisers.
Completion of the proposal is dependant on those terms being completed satisfactorily, however the economics of the
proposal described above will not change,” he says.
“In this context we are continuing to work hard on finalizing the plan for investors to vote on. In the interim we are
mindful of the patience shown by all those affected by the situation and we wish to thank them for this”.
ENDS