Rates Round Up

Dorchester gives debenture holders a Christmas present
Dorchester Pacific's finance unit will make an early payment to debenture holders under its deferred repayment plan - just in time for Christmas. The $12.3 million payment to some 7,200 investors takes the total repayments to 42.5% of the original $168 million.

Debenture holders were going to receive their fifth payment on December 31, but will now get the 7.5% payment on December 22.

The company also plans to send out details of its proposal to lift Dorchester Finance out of its moratorium arrangement by next June in a deal that would give debenture holders a 50% repayment, ownership and control of the company's hotels along with the proceeds of any sale with operating returns, and a three-year interest bearing note.

Hawk announces takeover plan for Cynotech Holdings
Allan Hawkins' Cynotech Securities has made an offer to takeover Cynotech Holdings, the minnow finance company that snapped up parts of the Western Bay Finance and National Finance loan books last year. It will offer preference shares in CSGL paying 8% annual interest. The offer also allows investors to cash up their investment funds at 13.5 cents per share without incurring brokerage charges.