27/10/2009 - 16:03

Port Bouvard in halt ahead of deadline

27/10/2009 - 16:03

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Perth real estate developer Port Bouvard has called for the trading of its shares to be halted ahead of a critical refinancing deadline on Sunday night.

Port Bouvard in halt ahead of deadline

Perth real estate developer Port Bouvard has called for the trading of its shares to be halted ahead of a critical refinancing deadline on Sunday night.

The company said the halt was required "pending the release of an announcement by the company regarding its banking facilities with St George Bank".

In Port Bouvard's audited annual accounts released last month, auditor BDO Kendalls noted there was material uncertainty regarding Port Bouvard's continuation as a going concern in the event that the company was unable to refinance or extend the St George facility before it expires on October 31 or raise additional capital.

The company owes the bank $51.9 million through six current facilities, and also owes a further $47.5 million to the bank through four non-current loans.

Last month, Port Bouvard joint chief executive Matt Perrott said the company continued "to receive strong support from St George Bank at both the state and national level and expects, subject to final approval by the bank's national credit committee to have this facility extended as planned".

He added that it was incumbent to explore a range of options to ensure Port Bouvard's debt and equity needs were satisfied in a manner suitable to the company and its future plans.

Port Bouvard posted a $28.9 million loss for the year to June 30, reflecting $41 million in non-cash asset writedowns on the back of the deterioration in domestic and global property markets. However, the company last month said it was confident asset values now reflected current independent professional valuations and that it could achieve internal rates of return in excess of 25 per cent on its key projects.

The facilities with St George are fully secured by first ranking mortgages over some of the company's land holdings.

WA Business News is seeking comment from Mr Perrott.

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