Mariner loss of $44.8 million in half-year results
Mariner Financial has reported a loss of nearly $45 million from asset revaluations over the half-year ending December 2008.
The losses were due to unrealised asset revaluations of $23.5 million along with a provision for rental lease negotiations worth $2.9 million and an actual asset loss of $7.9 million.
The company has flagged cutting head count by 10 per cent in the next six months in an attempt to reduce its costs. Mariner reduced the number of employees by 70 per cent from July to December 2008.
Mariner has asserted it will continue to pay off its debts as they come due using the funds generated from continued asset sales during the next three months, including its Southern Distribution Hub and the management rights for the Mariner Property Trust and MSS Moore Park. The funds will be combined with medium and short-term cash flow forecasts.
Mariner has also renegotiated repayment terms on $6.9 million of convertible notes, which will be due in March 2010. The convertible notes will be repayed using the proceeds from the company’s continued asset sales. $1.8 million of convertible notes was retired at the end of January.
Mariner is instituting a new business plan that will generate fees from advisers who arrange structured transactions on behalf of their institutional investors. The company is also implementing a marketing plan to raise revenue from its EcoPoint Resort assets. It will also restore the value of the management rights of its Mariner Coastal Investment Trust with the aim of selling the property in the next 18-month to two-year period.
The company raised $8.8 million from asset sales in the previous half year.
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