Calls to wind up Dodgy Dorchester

New Zealands own sub-prime crisis is coming to a head. Bruce Shepherd of the Shareholders Association has called for “Dodgy” Dorchester Pacific to be liquidated in a bid to recall $45 million spent by the troubled finance company in the past two years.

Shepherd is questioning several transactions including the $25 million Dorchester paid for a stake in St Laurence which was written down by $11.4 million in March and two loans of $10 million each repaid to interests associated with Kevin Podmore – the main owner of St Laurence – and cornerstone investor in Dorchester, and interests associated with Hugh Green Investments. If those transactions are voided then Dorchester Pacific theoretically would have an additional $45 million in the kitty. I say theoetically because although they may well be voided the chances of recovering those funds are almost non-existant.

I concur with Shepherd that without the recovery of those funds then Dorechester Pcific is insolvent.