Dorchester looks to do deal with debenture holders

The company, which has paid 35% of the amount owing under the deferred repayment plan for its finance unit, would like to find a settlement with investors which it could then take to shareholders as a means to pay off its outstanding debt.

"It would be good to reach some kind of agreement with debenture holders at some stage," executive director Paul Byrne says. "If we could agree, we could go to the shareholders to raise money, and in that way, get out of moratorium."

In August, Byrne told shareholders at its annual meeting that settling with debenture holders was one of four practical steps the company could take to come through the moratorium process successfully. A combination of improving its operations, selling assets and raising new capital could help the company survive, he said.

Still, Byrne is confident Dorchester Pacific is one of the few companies that entered moratorium that will be able to come out the other side in one piece.