TRV.L Share News (TRV)

Property investor Treveria says that it has been made aware of a potential tax liability in one of its subsidiaries which could have "a material adverse effect on the financial position" of the company. Treveria, which was formerly known as Dawnay Day Treveria, focuses on German retail property. The company had planned to distribute cash of €60.3m, equivalent to €0.10 a share, to shareholders but this has been put on hold. That would have left €25m in the bank which management believed was enough for the company's strategy. Treveria will not distribute the cash until it has a clear understanding of the liability. That won't be clarified for a while according to the company. Treveria says that the tax liability may have been triggered by the restructuring undertaken following the demise of Dawnay Day Group. Treveria does have enough cash to pay the tax but the payment will determine how much cash can be distributed. Shares in Treveria were suspended at €0.21 each on 10 November. Following the announcement they returned from suspension at 10.30am and they dropped to €0.11 each. Treveria reported an adjusted net asset value of €0.405 a share at the end of June 2009 although this does not include any assessment of deferred tax or the latest liability.