Hanover Finance has announced the details of its capital restructure and delayed repayment proposal, including a previously foreshadowed NZ$96 million injection of property and cash by its owners Mark Hotchin and Eric Watson. Here Bernard Hickey makes the case for receivers to be appointed, rather than accepting Hanover's delayed repayment proposal. The proposal to be voted on by debenture holders on December 9 involves Hanover continuing to operate as a going concern, including a resumption of lending within as early as 18 months and a drip feeding of capital repayments over the next 5 years. Hanover said it is assuming a recovery in the property market will allow it to recover loans to property developers over the next five years, which would return at least 18 cents in the dollar more than a receivership.
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