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Appeal unlikely for City Pacific

by Staff Reporter7 minute read
The Adviser

City Pacific is unlikely to appeal the decision made by a Queensland Court this week that gave Balmain Trilogy sole control of its $630 million First Mortgage Fund.

City Pacific was warned by KPMG in December last year that they were in danger of collapse after delivering a $74.3 million half year loss.

The company is now also in debt to its major lender, the Commonwealth Bank, for $100 million and had ceased trading last week.

The Commonwealth Bank is threatening legal action with City Pacific’s subsidiary property developer CP1 over a $15 million outstanding debt.

City Pacific is considering new proposals in a bid to help pay off its debt.

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