Spoke with the company today regarding their loans in arrears of approx $41m.
They state it is made up of 4 loans, one of which is for $35m, it relates to a development which CIY is now in control of. To date they have sold approx 85 of the 115 apartments, have contracts for about another 10 and are looking to lease the balance. The other 3 loans represent about $5m and have arrangements in place.
Overall $40m out of $1b in assets is not much.
Also the company borrowed some money to build its new offices.
I suggested they put a statement out explaining their current situation because as a holder its confusing with the company increasing profit guidance 1 week and the next week getting bad write ups.
They indicated that they might put out an announcement reconfirming the profit guidance and dividend are all still on track and that the increased debt levels relates to acquisitions in recent months which are all profit producing.
They also said that the comments in the press are all unfounded and couldn't understand the negative press.
CIY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
