26 Feb 2009

Strategic Finance posts $32m half-year loss

8:46 pm on 26 February 2009

Ailing finance company Strategic Finance has posted a half-year loss as the property and finance sector continues to struggle amid the deepening economic downturn.

The firm lost $32.8 million in the six months to December compared to a $14 million profit in the same period a year ago.

Strategic Finance says the loss is due mainly to a $53 million increase in bad debts, as the economic downturn means company is finding it more difficult to recover money it is owed.

Last December Strategic received approval for a plan to reschedule payments to 15,000 investors who are owed $325 million over five years.