16 Oct 2008

Finance company sale in doubt

7:00 am on 16 October 2008

The sale of Strategic Finance is now in doubt.

Parent company Allco HIT says sale conditions are unlikely to be met by the end of this month and it intends to reopen discussions.

The company has reached a tentative agreement to sell Strategic to a consortium that includes the finance firm's former owners, current management and a subsidiary of the British-owned bank HBOS.

Strategic's chief executive Kerry Finnigan says global financial turmoil and general economic downturn have made it difficult for the parties to meet the conditions required for a sale of the ailing finance company.

Strategic lost $15.7 million in the June year and has stopped its 15,000 investors from withdrawing the $325 million they have in the company.