The listed property firm manages to negotiate a settlement with a Queensland property developer.
Embattled property group City Pacific has finally settled a property dispute, about which it had been in negotiations earlier this month.
On December 5, the company issued a trading halt on the Australian Securities Exchange (ASX) with respect to court proceedings between the firm and Mewett Developments.
The proceedings related to the sale of a commercial building.
Both parties have now reached an in-principle agreement which will dispense with the court proceedings, the company told the ASX yesterday.
The terms of the agreement are currently being negotiated between the two companies.
City Pacific has been hit by the liquidity crunch in the property and finance sectors. The firm incurred $161.4 million in impairment losses for the year to June 30.
In October the firm was granted an extension of the debt repayment deadline for its First Mortgage Fund (FMF) following talks with its financiers. FMF now owes $12.5 million by February 27, 2009.
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