PHIL Sullivan's CP1 Limited has admitted an error in calculating the total current and non-current liabilities in its balance sheet.
Sullivan, who has a direct 55.20% stake in CP1 and 30.60% stake through his other company City Pacific, issued an amended half year accounts yesterday.
CP1 had incorrectly labelled its current liabilities as $125.41 million in its original accounts – when it was in fact $151.84 million.
Meanwhile, Sullivan’s City Pacific is expected to make an announcement today regarding the state of the company.
Earlier this week, City Pacific’s share price plunged fell 94.5 cents or 49.22% to 97.5 cents before a trading halt was requested.
The halt comes amid concerns the company’s largest unlisted fund, the $1.15 billion City Pacific First Mortgage Fund has a $240 million debt facility with the Commonwealth Bank, which is maturing in May.
City Pacific also made errors in its accounts regarding its current liabilities.
The new half year accounts showed City Pacific’s current liabilities, which do not include the mortgage fund’s debts, was $156 million up from $126.5 million in the original accounts.
Meanwhile, Indigo Pacific has stated that it has no exposure to City Pacific or the City Pacific First Mortgage Fund.
Managing Director Steve Mackay said the property development financier was in a strong financial position despite current market volatility.
“Indigo Pacific has zero debt, and zero exposure to City Pacific Limited or its affiliated funds, including the City Pacific First Mortgage Fund,” Mackay concluded.
Australian Property Journal