LONDON (Alliance News) - AIM-listed property developer Kimberly Enterprises NV Monday said it is continuing to try to meet its obligations to its creditors, as it remains in breach of its debt obligations, while it posted a broadly flat pretax loss for the first half of 2015.
Kimberly Enterprises has been in breach of its obligation to make the lease payments for Marina Dorcol in Belgrade since January 2011. As at end-June the company said it is in breach of EUR23.4 million, and since the end of the half year has further breached its obligation to pay by an additional amount of EUR100,000.
It said it considers it unlikely that some of the projects related to its joint ventures will generate enough cash to repay all obligations when they fall due.
Engel Resources and Development Ltd provided several bridge loans for a total of EUR304,000 to help the company fund its immediate liabilities. Kimberly said it sold several assets in Poland, Czech Republic and Canada to help stabilise its financial position.
Kimberly Enterprises said there are "material uncertainties which cast significant doubt on the group's ability to continue as a going concern".
It posted a pretax loss of EUR4.6 million for the half year, broadly flat compared to a pretax loss of EUR4.4 million a year before. It recorded revenue of EUR71,000, down from EUR130,000.
"Kimberly's continues to try to meet its obligations towards its creditors and to reach a payments schedule with Engel Resources and Development in order to repay the Group's outstanding loans from ERD," said Chief Executive Officer Liron Or in a statement.
Shares in Kimberly Enterprises were untraded Monday morning. It last closed at 0.265 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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