whats eating city pacific..., page-10

Noticed that CPK is about to miss a $15mil milestone payment to it's financier (most likely CBA) on Marina Cove. Hopefully, they can reschedule to a later date. Otherwise this might be the final domino that brings everything down.

**********************************************************

28 May 2009
The Manager
Company Announcements
ASX Company Announcements Office
SYDNEY NSW 2000

Dear Sir / Madam,

MARKET UPDATE

Pursuant to a finance facility between Marina Cove Pty Ltd (“Marina
Cove”), a wholly owned subsidiary of CP1, and its financier, Marina
Cove is required to pay the sum of $15 million to the financier in
repayment of debt on or before 31 May 2009 (“Milestone”).
The CP1 Board advises that Marina Cove had entered into a legally
binding agreement for the sale of certain land holdings at the Marina
Cove development. The purchaser under that agreement has
unexpectedly defaulted, resulting in the termination of the agreement.
The agreement would have provided Marina Cove with sufficient
funds to meet the Milestone.
The CP1 Board is in discussions with its financier regarding the timing
of the Milestone and will make a further announcement as soon as
practicable.

Yours faithfully
CP1 Limited
Caroline Lamshed
Company Secretary