This article is from the Australian Property Journal archive
FINANCIAL services and property company City Pacific is facing a $380 million court battle as it revealed a net loss of $74.3 million for the half year ended December 31 2008.
Marina operator IMDM (Townsville FDA) Pty Ltd which is developing the $1 billion Townsville Ocean Terminal project, is suing City Pacific in the Supreme Court of Queensland seeking $380 million in damages.
IMDM is headed by British billionaire businessman Michael Ashcroft who last year bought the project from City Pacific.
City Pacific said it intends to strenuously defend the claims.
City Pacific is fighting a number of battles on different fronts. A fortnight ago, Gold Coast developer Craig Gore launched legal action against City Pacific for more than $450 million claiming City Pacific acted unlawfully by appointing receivers to three of his companies last month.
Meanwhile City Pacific has blamed the global credit crisis for its poor half year results.
The company said result included impairment losses of $49.9 million and in March 2009, City Pacific settled a legal dispute which resulted in the company recognising an additional, non-recurring expense of $22 million for the half year.
The loss for the half year resulted in the company having consolidated net assets of negative $9.1 million.
City Pacific also said it is working to stabilise the City Pacific First Mortgage Fund, which is under siege by Trilogy Capital Group.
City Pacific said the FMF will recommence the payment of distributions and redemptions to unitholders as soon as its cash position enables it to do so.
Australian Property Journal