15 Jul 2009

Strategic Finance forecasts $98m loss

8:21 am on 15 July 2009

Finance firm Strategic Finance expects to post a loss of about $98 million for the year to June.

The company says it will make much higher provisions for bad loans, and experienced a steeper decline in profit for the second half of the year.

Debenture holders, who are owed $325 million, will still get their money back, though initial repayments will be delayed, the company says.

Subordinated note holders, owed $21 million, will not get any interest and only 85% of their investment.

Shareholder funds are expected to be $25 million in the red.

The company has blamed the difficult economic climate and decreasing property values for the results.