tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, July 2nd, 11:05PM

Investments

rss
Latest Headlines

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

The final amount of the loss for the year ended June 30 will be known once KPMG completes an audit, Strategic said in a statement. Its full results will be posted on August 29.

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 agreementGeneva to review loan book »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 1.25  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com