LONDON (Alliance News) - Central and Eastern European property developer Kimberly Enterprises NV Friday reported a narrowed pretax loss for the first nine months of 2015, as it looks to negotiate with its parent company to restructure loans.
Kimberly reported a pretax loss of EUR6.9 million for the nine months to end-September, narrowed from a pretax loss of EUR8.6 million a year before, mostly as a result of a EUR1.1 million share of a profit from investments, and a rise in revenue to EUR764,000 from EUR185,000.
The company said that during the period it reached settlements with most of its former employees and service providers for past open debts.
Since January 2011 the company has been in breach of an obligation to make lease Marina Dorcol in Belgrade. As at the end of September, it was in breach of EUR32.1 million, and since then it has further breached its obligation to pay by an additional EUR100,000.
In order to manage its financial situation, Kimberly Enterprises approached Engel Resources and Development Ltd, the parent company of its immediate parent company, to provide additional financial assistance to fund its immediate liabilities. During the period, the company sold several assets in Poland, the Czech Republic and Canada to help stabilise its financial position.
As at the end of September, Kimberly Enterprises has current liabilities totally EUR68.9 million, which exceeds its current assets by EUR10.8 million, and a negative equity of EUR38.9 million.
"Kimberly Enterprises NV does not itself have any material obligations towards any creditors apart from the outstanding loans granted by its parent company Engel Resources and Development Ltd. Kimberly wishes to start and negotiate with ERD in order to restructure these loans," said Chief Executive Officer Liron Or in a statement.
Shares in Kimberly were up 11% at 0.250 pence Friday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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