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City Pacific shares plunge

City Pacific funds frozen for six months

{ 12:35 PM, 7/3/2008 } { Posted by Anonymous }

As a result of increase in redemption requests, the directors of City Pacific Ltd, the responsible entity for the First Mortgage Fund, have resolved to defer the payment of redemptions from the fund for up to 180 days, in accordance with the terms of the fund's constitution and product disclosure statement.
A spokesman for the company confirmed that its other fund, an income fund that has less than 100 investors, would also freeze payments on redemptions for six months.
He said the company was expecting $600 million in loans to be repaid within the next six months and this would resolve any liquidity issues.
The spokesman said the company was financially sound and would be able to repay all redemptions within 180 days.
He said investors who lodged a valid redemption request would continue to be paid distributions until their units in the fund were redeemed

Letter to investors

{ 10:56 AM, 8/3/2008 } { Posted by Anonymous }

From letter to investors:
The Directors believe it is in the best interests of all investors to preserve the
value of the Fund by completing projects in the ordinary course of the Fund’s
operations. This can only be achieved through deferring the payment of
redemptions and to allow for the orderly accumulation of cash in the Fund to
meet all valid redemption requests.
The First Mortgage Fund has more than $1.1 billion in assets under management
invested in cash and first mortgages over real property in Australia. The Fund
focuses on quality developments in high growth areas within the leisure and lifestyle
sector of the Australian property market and all loans are expected to be repaid in
full in the normal course of the Fund’s operations.
The assets of the First Mortgage Fund are held separate to those of City Pacific
Limited by the Public Trustee of Queensland.

Fortress helps with funding

{ 11:11 AM, 20/3/2008 } { Posted by Anonymous }

City Pacific mortgage trust has received $30 million from US financier Fortress Investment Group, City Pacific announced yesterday. Another $70 million is due by the end of March. In return, Fortress is to become a "joint first mortgage lender" on a portfolio of loans from the fund's book.

City Pacific First Mortgage Fund Update

{ 11:28 AM, 4/4/2008 } { Posted by Anonymous }

Following the satisfaction of all conditions precedent, City Pacific Limited and the
First Mortgage Fund will receive approximately $40 million this week being the first
tranche of an $87 million settlement for part of the The Foundry development in
Melbourne. Settlement on the property has been delayed several times since
December 2007, with the most recent delay on March 28 last week.
City Pacific Limited and the First Mortgage Fund are lenders to the Donnelly Group
for the construction of the mixed use property in Bourke Street.

Reducing the debt

{ 6:41 PM, 4/6/2008 } { Posted by Anonymous }

City Pacific has finalised negotiations to extend repayment of the First Mortgage Fund banking facilities until July 31. The debt has been reduced to $180m from $240m.

Numbers

{ 3:24 PM, 11/9/2008 } { Posted by Anonymous }

CIY total liabilities have shrunk from $732 million to $257 million over the past year, with a fall in value of asset base from $1.55 billion to just $312 million for the year to the end of June.

As a result, the net asset backing for each of the group's shares has dropped from $1.33 a year ago to just 29c.

City Pacific's long-term liabilities fell from $579 million last year to just $1.2 million.

In comparison, it faces having to pay back the outstanding $257 million sum by next June. Of this, $159 million is in interest-bearing loans.

Part of that amount is due to be repaid by the end of next month, following a new deal struck by the company with one of its main lenders after a breach in the covenants of the original financing arrangements.

FMF Unit Holders Action Group demands

{ 1:16 PM, 3/10/2008 } { Posted by Anonymous }

Trust: There are many unknowns and CIY has some convincing to do. Here are some items
which could form the basis of an arrangement. They are by no means exhaustive but serve as
a start.
1. That CIY undertake to pay, say, 20% in redemptions to small contributors, say < $10K
immediately as adequate funds are available.
2. That CIY pay distributions at a set rate, say, 10% (better than the banks)
3. That CIY undertake not to amend the constitution.
4. That CIY not engage in further borrowings which bind the fund.
5. That CIY not engage in further lending to its own company or affiliates.
6. That in the medium term CIY not engage in further borrowings (except to comply with
existing loans)
7. That CIY distribute funds on a pro-rata basis to all unit-holders as and when funds become
available.
8. That CIY allow unit-holders to retain any paid redemptions in the fund but as priority
lenders before further payments of redemptions to unitholders (this might encourage further
participation in the fund).
9. That all unpaid distributions (including those not paid Aug and Sep 2008) remain a debt
CIY has to unit-holders to be paid as soon as practicable.