Strategic has loss of $15.5m on bad debts
Strategic Finance, whose managers are seeking to buy the ailing company, had a full-year operating loss of about NZ$15.5 million on write-offs and provisions for bad debts.
Wednesday, August 20th 2008, 11:14AM
by Jonathan Underhill
Strategic's loan book is being reviewed by adviser KordaMentha and KPMG, the company's auditor, to enable it to complete its financial statements and "in view of the increasingly difficult market conditions in the property sector."
"This is a disappointing result but it is considered appropriate in the current economic environment to adopt a conservative view" of the loan book, chief executive Kerry Finnigan said. "There are likely to be further loan defaults."
Under a plan to restructure the company, Strategic would repay 30% of its debentures over three years and issue new bonds to replace the rest to save the company.
The capital restructuring is dependent on Strategic's managers, directors and partner BOS International clinching a buyout deal for the business from owner Allco HIT, it said this month.
By extending the period for repayments and amending the interest paid, Strategic may buy enough time to recover from a slump in liquidity that's hampered the company's ability to pay investors.
| « Allco Hit, Strategic bidders reach preliminary agreement | Geneva to review loan book » |
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