Keybridge Capital, which invests in structured finance transactions, has posted a $39.2 million first-half loss and says its priority is to repay its almost $200 million in debt.
The loss compared with the $1.3 million net profit a year earlier, Sydney-based Keybridge said in a statement on Thursday.
Pre-tax operating profit slumped to $3.8 million from $23.7 million.
The company was then hit by an $22.2 million unrealised loss on foreign currency assets and $17.9 million in impairment provisions.
Keybridge said that it was not looking to make new investments for the time being. Its priority was to sell investments to repay some of the $189 million it owes, which has been reduced from over $224 million the year before.
The company has to make a further $25 million of repayments by December 2010.
Repaying debt may be getting harder, as the incoming cash from operating activities slipped to a quarter of the prior corresponding period and its asset values have slumped.
But Keybridge said that it had received $16 million in additional payments since December 31, and was confident of making the required repayments.
"Conditions remain challenging in our markets for achieving investment repayments and maintaining equity value for shareholders," Keybridge managing director Mark Phillips said in the statement.
"We are pleased to have made headway in reducing our borrowings and, for now, this remains our key objective."
The company's priorities were to keep operating costs as low as possible, bring forward asset sales where possible and, where sales are not possible, preserve as much value as possible.
After writedowns, the company's investment assets were worth $268 million, with just over half of those in aviation.
With $6.9 million cash on hand, the company has equity of about $86.1 million, or net tangible assets of 50 cents per share.
The $17.9 million impairment came about as the company agreed to accept accelerated repayment of some investments at a discount to book value.
AAP
