30 Aug 2008

Strategic loses $15.7 million

10:31 am on 30 August 2008

Strategic Finance has confirmed it ended the financial year in the red, losing $15.7 million in the June year.

Operating income rose 20% to $72.4m, but the slump in the property market has resulted in an increase in provisions for bad debt and loan defaults.

The troubled finance company says KPMG has reviewed its loan book, and it says assets of $533m still outweighs liabilities of $459m.

Strategic Finance recently stopped its 15,000 investors from pulling out a total of $325m.

Its management is now trying to put together a deal to buy the company back from its Australian owner Allco HIT.

Meanwhile, Dorchester Pacific has put its deferred repayment plan in front of its Trustees for approval to present to its investors.

It owes investors $176m, and its assets include $30m in cash.

The troubled finance firm hopes investors can vote on a repayment plan by the end of September.