12 May 2009

Dorchester will lose less than expected this year

9:52 pm on 12 May 2009

Troubled finance company Dorchester Pacific says it will not lose as much money as expected this year, due to a $30 million accounting adjustment in its favour.

The company expects to report a loss of $25 million for the year to March, below the $35 million loss it recorded for the half year.

However, Dorchester says the accounting adjustment will reverse over time.

The company has had to book an additional $7 million in property loan provisions, which it says is due to lower valuations.

At the end of last year, investors in Dorchester approved a rejigged plan to repay the $172 million they are owed over three years.

Chairman Barry Graham says the company has the cash available to make the June and September payments and by the end of the year will have repaid 42.5 cents in the dollar.