This article is from the Australian Property Journal archive
PROPERTY development and financial services company CP1 has been served with a notice of noncompliance from its lender, after the company failed to repay debt.
CP1’s wholly owned subsidiary Marina Cove Pty Ltd did not meet the required milestone to pay the sum of $15 million to its financier in repayment of debt on or before May 31.
CP1 said its lender requested Marina Cove to promptly provide a proposal regarding the Martha Cove development (stages 4A, 4B and 4C) and how Marina Cove proposes to fix the non-compliance, by no later than June 30.
Failure to fulfil these requirements would constitute an event of default under the agreement with the financier.
The company had entered into a legally binding agreement to sell certain land holdings at the Marina Cove development. But last month revealed that the potential buyer has unexpectedly defaulted. CP1 said sale would have given it enough money to meet the $15 million repayment.
Australian Property Journal