30 May 2009

Further losses for finance companies

10:54 am on 30 May 2009

The downturn in the property market has seen further losses for two finance companies.

Dorchester Pacific lost $25.4 million in the year to March - an increase of 40% on the previous year due to increased provisions for bad property and consumers loans.

Last year, investors approved a rejigged plan for repayment of the $172 million they are owed, over three years.

Lombard Group lost $1.5 million in the year to March. Its finance arm, Lombard Finance & Investments was placed in receivership last year.

Lombard Finance & Investments owes $127 million to about 4400 investors.

Earlier this month, receivers said the deterioriating property market meant Lombard investors would get even less back than forecast last December, estimating a return of between 17% - 29%.