Broker Collins Stewart is on the verge of taking over International SecuritiesTrading Corp. after the failed Irish debt investor's creditors agreed to arescue plan that will leave a group of creditor banks with a
Investment banks including
The creditor banks, which number 18 in all, will share a loss of
ISTC was forced to seek court protection in November after a demand byDresdner Kleinwort for nonpayment of fees, which had become overdue.
A week earlier, Financial News first reported that the company's leadinglending banks had begun selling the collateral they held against its loans in anattempt to recoup some of their money.
Collins Stewart is set to buy ISTC once the Irish high court approves therestructuring plan. It will pay a notional
Existing shareholders in ISTC will be offered the chance to invest in the newbusiness and Collins Stewart hopes to attract a range of new investors to thecompany, whose business model it wants to import to
Many of ISTC's existing management will remain with the business, includingco-founder and Chief Executive Tiarnan O'Mahoney, while Collins Stewart'schairman, Terry Smith, will become chairman of the company.
Collins Stewart's advisory business, Hawkpoint, advised the Irish authoritieson ISTC's rescue and conducted the competitive bidding process for the sale ofthe business.
Deutsche Bank, Dresdner Kleinwort, ISTC and Morgan Stanley were notimmediately available for comment. Dresdner Kleinwort,
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(END) Dow Jones Newswires
