City Pacific's First Mortgage Fund gets an extension on its debt repayment deadline following discussions with its financiers.
Property investment manager City Pacific has managed to extend the debt repayment deadline for its First Mortgage Fund (FMF) following talks with its financiers.
FMF now owes $130 million to its lenders by October 31, 2008, the firm said in a statement to the Australian Securities Exchange (ASX) on Friday.
The original deadline was July 31, 2008, and fund's lenders include the Commonwealth Bank of Australia (CBA).
City Pacific has repaid $110 million to its lenders since January 2008.
"Despite the difficult market conditions City Pacific's management team continue to balance the interests of investors, commitments to borrowers and the fund's obligation to reduce its financier's facility," City Pacific managing director and chief executive Phil Sullivan said.
"City Pacific remains confident in the strength of the loan portfolio for the fund, which comprises quality projects primarily located in South East Queensland, where the property market and population growth figures remain strong."
The announcement came after the company deferred payment on its interim dividend from July 31, to November 28, 2008.
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