DPC Announces likely impairment of investment in STL
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Dorchester Pacific Limited (DPC) | 10:11 am, Thursday 28 August 2008 | DPC | 0.090 |
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Company Announcement
28 August 2008
Dorchester Announces likely impairment of investment in St Laurence Ltd
As noted in an earlier announcement by Dorchester Pacific, on 24 June 2008 St
Laurence withdrew its prospectus and announced its intention to present a
repayment plan to its investors for approval.
St Laurence Ltd has since advised that it made a $29.8 million pre-tax loss
for the quarter ending 30 June 2008. Under equity accounting rules
Dorchester will be required to equity account this loss resulting in a
reduction in the carrying value of its 25% holding in St Laurence.
These events give rise to the likelihood of a need for a further impairment
in the carrying value of Dorchester's investment in St Laurence.
As at 31 March 2008, the carrying value of Dorchester Pacific's 25% holding
in St Laurence was $21.3 million. Dorchester will not, however, be in a
position to quantify the extent to which that value has been impaired until
after St Laurence's proposed scheme has been finalised and voted on by its
investors.
Ends
