Loss-making Manor Inns faces receivership

Manor Inns, which yesterday announced a loss to the end of December of $331,000, says that over a long period it has explored methods of restructuring its debt to its banker, WestpacTrust.

However the company's debt facility has matured and the Directors say it is not possible to restructure the residual debt to the reasonable satisfaction of the bank.

"In these circumstances, prudence demands that the Directors request the company's banker to appoint a receiver, and the Directors have done so," the company says.

Manor Inns has been continually dogged by its high debt burden, and has not recorded a profit for around three years.

While its latest half-year result of $331,000 deficit was an improvement on last year's $1.023 million loss, the company said the improvement was mainly due to a reversal of prior year's accrued interest on borrowings an not due to improved trading.

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