Wednesday 29th July 2009
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Propertyfinance Group, the parent of finance company Propertyfinance Securities, posted a full-year loss and said it won’t be able to include some $12 million of forgiven interest until the next financial year.
The net loss was $19.9 million in the 12 months ended March 31, from a loss of $6.6 million a year earlier, as revenue tumbled 31% to $9.5 million. The results included $16.6 million of impaired assets.
“The ultimate recoverability of both the debtors and debt notes may not be known for a number of years and given the prevailing market conditions, the directors consider impairment levels to be appropriate,” the company said in a statement.
Propertyfinance Group held a moratorium meeting last month after its subsidiary failed to meet a $15.5 million payment in full, and as a result of the meeting, $12.3 million of interest was forgiven.
The extra income will be accounted for in the 2010 financial year.
The parent company was suspended from trading on the New Zealand stock exchange last month after it failed to meet the deadline to file its full-year results. It last traded at 10 cents in July last year. The group’s total assets shrank 12% to $111.3 million.
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