YasmynIn considering CIY's future there is a lot to take in:Last...

Yasmyn

In considering CIY's future there is a lot to take in:

Last financial accounts for December 08 showed current assets as 132,185,769 and current liabilities as 248,007,043 which wasn't a pretty picture at the time imo.

At the time they were in breach of their AFS Licence due to a negative NTA position which in turn threatened their ability to continue as RE of the City Pacific First Mortgage Fund.

Since that time they have managed to subordinate their debt to CBA which in turn rectified their NTA position. It could be argued that the CBA's support of CIY at such a difficult time is indicative that they at least believe that CIY still has some chance of recovery. (Bearing in mind that CBA did this just prior to the unit holder vote that would effectively remove their RE rights to the Mortgage Fund).

The RE rights to the City Pacific First Mortgage Fund were by City Pac's own admission, a major part of their income. They initially lost due to a unit holders' vote. They fought this in court and lost that battle. At this time they are still considering whether or not to appeal the decision which was given on 20 July. Media reports say an appeal is unlikely however no confirmation has been given either way by CIY yet.

They have sacked about 20 staff at their Gold Coast offices but will be reemploying some of them on a contract basis. Also they are considering a restructure of the company with a focus on 'key assets'.

They've recently had their Townsville Ocean Terminal plans approved by the Queensland Govt.

There has of course been other things going on in relation to their other companies that you also will need to consider, Indigo Pacific (IPA), CP1 Limited (CPK).

So in summary there's been a lot going on some positive, some negative to take in and consider. I have by no means included all events and happenings.

Good luck with whatever you decide to do.

(P.s. I have units in the CPFMF but no shares. I was also part of the group that was looking for potential Re's to replace CP as RE of the fund. I'm not actually giving an opinion either way on the future of CIY just telling you what I know for you to consider and research more if you wish).