Devine into losses as ANZ financing under cloud

Devine into losses as ANZ financing under cloud
Devine into losses as ANZ financing under cloud

Poorly performing Brisbane based property development company Devine has posted a $36 million after tax loss.

Its liabilities now exceed assets.

The developer, controlled by construction giant CIMIC, told the Australian Securities Exchange its primary focus was the completion of the strategic review and the upcoming discussions with its primary financier ANZ.

"Currently, there is uncertainty in regard to whether the group can continue to operate as a going concern to realise assets and discharge liabilities in the ordinary course of business."

The company said its results were "extremely disappointing" after three consecutive profit downgrades since August.

The company's chief executive, chairman and chief financial officer have all resigned with Devine's current chairman David Robinson, the only one of eight directors who remain at the company from last year.  

Devine, which has about 3000 shareholders, has also been subject to a takeover bid by CIMIC, with it highly likely that the company could end up delisting. 

The company which is subject to a takeover bid from its largest shareholder CIMIC, formerly Leighton Holdings, largely missed out on the apartment development boom in Brisbane.

Devine has 11,000 dwellings it can develop with about 2500 lots are in Gladstone. 

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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