City Pacific Trading halt
City Pacific one of Australia’s largest non bank loan providers has been placed in a trading halt after their shares have lost half of their value and is on watch whether they are able to repay the $240M loan due to CBA by the end of March.
According to News.com.au CBA have been talking to City Pacific since December about the repayment of the $240M loan facility. Of this $240M loan, $90M had to be paid by the end of March and the remaining $149.9M due at the end of April. Apart from that, they have another $100K due at the end of May and another $49M to be paid for the purchase of Mariners Cove (located in Southport, Queensland).
The latest news have prompted fears in the market and have joined the ranks of MFS, Centro and RAMS Home Loans - all companies which deals in short term financing.
On City Pacific’s website, it shows that they “have $5B in mortgage assets under advice, comprising over $1B Funds Under Management, a residential loan book of $3B and commercial mortgage assets under management of approximately $1B”.
Their trading halt is approximately due to resume by tomorrow (Thursday 05th Mar 08). It would be interesting to see what happens after this and what their response to the ASX query would be.
Stay tuned for progress on this story…
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