When I referred to debt and you responded that the company had no borrowings, I actually should have clarified.
I actually meant the loans which were owed to the company.
At 30 June 2007, the company had an impairment loss on loans of approx $10m and had loans owing to you of approx $19m and receivables of approx $6m, the majoiryt of which is interest receivable.
The company also has a lot of related company loans.
Is the company confident that these loans will be recovered in full and are any in default.
Also these loans are secured. Are they first mortgages
RESPONSE
Thank you for the follow-up email.
All loans are to the Indigo Group (a private company - not to be confused with Indigo Pacific Limited). In the past we have had impairment losses but these related to projects taking longer than expected, no capital losses have ever been incurred. As outlined at the last AGM, we have changed the structure of the loans and expect that this will eliminate impairment losses going forward. All loans are secured by fixed and floating charge over the Indigo Group companies and are cross-collateralised over all companies. The loans rank behind the other secured lenders on the projects and that is why they earn interest at 20% per annum.
Regards,
Steve Mackay Managing Director
IPA Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
