LOST RESORT
There was an eerie silence from Bill Ireland's incredibly shrinking financial concern Mariner Corp yesterday, following the jettisoning of another of its key projects.
The
NSW government announced the Mariner-owned Killalea Coastal Investments Pty Ltd
(KCI) had canned its controversial project to develop an eco-resort in the
Killalea State Park. Babcock & Brown was initially part of the venture.
The state member for Kiama, Matt Brown, said in a statement that the project was cancelled ''because of the impact of the global financial crisis on KCI''.
The
company failed to highlight this to the ASX. The cancellation could have dire
consequences for its asset backing, which was last put at 0.01¢ a share or a
meagre $20,000. In its most recent accounts, Mariner warned there was a ''risk''
of a write-down from the Killalea business.
At
least there was some sympathy from the member for Kiama.
''It's
sad they are in the financial position they are. That's not good for any
Australian company,'' Brown told CBD.
Mariner has also yet to provide an update on the $17.5 million debt over its last remaining development - a ''distribution hub'' outside of Goulburn. Mariner has a 50 per cent stake in the development. The other half is owned by a firm in which John Benson is a director and shareholder. Benson is best remembered for helping the former Prime Minister Paul Keating find a buyer for his piggery in 1994.
Mariner shares yesterday dipped 0.1 of a cent to a new low of 0.4¢. The company appears to have abandoned its plans to raise up to $10 million at 1.2¢ a share.
Sydney Morning Herald – 11 may 2010
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