14 Jul 2004

Receivers of Nauru Trust say no refinancing deal has been arranged

10:16 am on 14 July 2004

The Nauru Government has agreed to vacate its offices in Nauru House in Australia by the end of next month.

And, the receivers for the Australian assets of the Nauru Phosphate Royalties Trust, the accountancy firm PBB, has confirmed that there is no refinancing deal on the table for Nauru's debts.

Our reporter, Margot Staunton, has talked to one of the receivers.......

"A joint receiver and manager for PBB, Mark Robinson, says the Government offered to vacate two floors of the building in Melbourne by the 30th of August, following negotiations on Friday. Mr Robinson says there's doubt over the trust's ability to refinance, because its debts make it less than attractive to the financial community. He says the trust has cast its net widely amongst refinanciers, but has fallen out with a number of them over various matters. Mr Robinson believes Nauru's entities in Australia have not secured a refinancing package, because they lack the appropriate information required by a refinancier. The parties have entered into an agreement to allow the trust access to information on their Melbourne assets, including trading statements and accounts. The trust will also be allowed access to three Melbourne properties - Nauru House, the Savoy Park Plaza in Spencer Street and the Downtowner Hotel in Carlton."