This article is from the Australian Property Journal archive
CP1 has cancelled its interim dividend payment to shareholders.
The company whose major investors include 55.20% shareholder Phil Sullivan and 30.6% shareholder City Pacific, said it had expected to have sufficient funds to pay the interim dividend.
CP1 had intended to pay an interim dividend of three cents per share on May 30.
Sullivan said the company expected to have sufficient funds to pay the interim dividend based on the expected repayment of various vendor finance facilities provided by the company and projected land sales at the Martha Cove development.
“Repayment of the vendor finance facilities has been delayed and the funds will not be received by May 30 2008. In addition, land sales at Martha’s Cove have been below projections. It is the boards’ view that the current difficult credit climate has contributed to this outcome.
“There are a number of sales transactions for Martha Cove properties currently in train but these will not conclude in time to provide funds by May 30 2008,” Sullivan said.
The board will give consideration to paying an interim dividend later this year.
Australian Property Journal
