1 Mar 2010

$99.8m half year loss reported by Strategic Finance

3:15 pm on 1 March 2010

Strategic Finance lost almost $100 million in the six months to December.

The after-tax loss of $99.8 million by the troubled finance company is higher than the $84 million that it forecast in January, due to further declines in the property market.

However, the company, which is in a moratorium, says it has been forced to publish the unaudited version of its accounts.

This is because an audit by its accountants KPMG has been delayed by ongoing discussions between Strategic and its trustee over a missed payment to its 15,000 investors earlier this year.

In a statement, Strategic says the board will update its investors shortly on the outcome of these discussions.

It has been reported that Strategic is considering an debt for equity swap with a potential suitor, similar to the deal between Hanover and Allied Farmers last year.

Last December, Strategic investors agreed to be repaid the $325 million owed over five years.

It has since advised they will get between 85 cents and 93c in every dollar.