Martha Cove developer shares suspended over debt facility announcement
Aug 27th, 2008 by admin
SHARES in City Pacific-linked property developer CP1 were suspended from trading yesterday pending an announcement over its debt facility.
CP1, owner of the Gold Coast International Hotel and developer of Martha Cove on Victoria’s Mornington Peninsula, has a total of $122 million in loans from the Commonwealth Bank, with one of them due for repayment in November.
The Gold Coast company, in which Melbourne construction dynasty, the Grollo family, secured a 17.9 per cent stake last year, told the Australian Securities Exchange yesterday it was in ‘discussions with its financier concerning the maturity of its finance facility’.
It is unclear when the shares will be reinstated.
At the end of December, a CP1 subsidiary had a $110 million loan from the Commonwealth Bank secured against Victorian property assets and due for maturity in August next year.
It had drawn down $88 million of that facility at the time, with $15 million of that due to be paid at the end of June.
CP1 was scheduled to repay $25 million by December 31 and $30 million by June 30 next year, with the balance due next August.
It also had a separate $12 million loan with CBA, due to be repaid this November.
Shares in CP1, which was deconsolidated from City Pacific’s books after the Grollo purchase, last traded at 7c.
The company is expecting a post a loss for the 2008 financial year, after posting a robust $36.8 million profit in 2007.
Source: www.goldcoast.com.au
