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Former MFS company still under a cloudShannon Willoughby

19Apr08

SHAREHOLDERS of the beseiged Gold Coast-listed company, Living and Leisure, will remain in the dark as to its future for an extra 10 days after the embattled former MFS-associated company said it was still in survival negotiations.

The company, which has debts amounting to $185 million, was due to make an announcement about its status this weekend.

It yesterday said it was continuing negotiations to sell assets, refinance and recapitalise in a bid to continue as a going concern

The company said it hoped to make an announcement on April 28.

Living and Leisure shares remain suspended.

Last month, the Gold Coast company and its auditor said they were concerned over Living and Leisure's ability to pay its debt.

PricewaterhouseCoopers said that even if the company sold all its assets, funds raised might not be enough to pay the debt, due on June 30.

The company has posted an $11.9 million loss compared with a $13.75 million profit the previous year.

Late last year, Living and Leisure was informed it had breached covenants relating to a loan provided by a senior secured lender owed $112.5 million.

It also owes $57 million to a related party, believed to be a fund linked to the Octaviar formerly known as MFS Limited and also embattled.

Living and Leisure is seeking buyers for its assets, including its aquarium business, ski fields, treetop walks and a Melbourne development.

The company said that if it sold its Oceanis Group, a one of the world's largest aquarium businesses, whose assets include the Melbourne Aquarium, it would experience a 'significant loss . . . in the range of $30 to $40 million'.

Living and Leisure's decision to delay an announcement as to its future has come just five days after GEO Property, once linked to the former MFS Limited, said that its shares would remain suspended.

GEO shareholders were told that the company's securities would remain in a trading halt until the end of next week.

GEO said the delay related to the fact that it had not been able to finalise documentation for its revised banking arrangements by yesterday's due date.

GEO (formerly known as MFS Diversified) suspended trading in its stapled securities on February 29.

The move followed an announcement to the market that it had breached a debt covenant with a syndicate led by the Bank of Scotland.

Living and Leisure's shares remain suspended at 36c, while GEO's sit at 47.5c.