5 May 2004

Australian receivers for Nauru warn of risky deals

1:11 pm on 5 May 2004

The receivers for properties owned by the Nauru Trust in Australia are warning the broke island republic that proposed refinancing deals could cost it dearly.

Australian receivers Prentice Parberry Barilla have been sent in by American company GE Capital to recover loans made by GE to Nauru.

Steve Parberry, the co-receiver, says he is getting expert advice about the properties, before it's decided what should be done about them.

Mr Parberry says approaches have been made about refinancing deals, but he's skeptical and cautious, and no such deals are under consideration at the moment.

"We're only there to protect the value of these assets, not to be detrimental to them. What some of these so-called schemes, that are being put up, seem to me, are probably going to be detrimental to the value of the assets; in that large fees are going to be paid by way of success fees to agents, and other parties, which ultimately, will take further funds out of the hands of the Nauruans."

Steve Parberry says the Nauruan Government, facing a lack of a majority in Parliament, should focus on solving that issue and not discuss such deals.