City Pacific has successfully rectified its net tangible asset (NTA) position with respect to the requirements of its Australian Financial Services Licence (AFSL).
The group notified the Australian Securities Exchange today that it had rectified is position via a $39 million debt subordination.
The group said its AFSL required it to have a minimum NTA position of $5 million and in late March it had announced in its half-year accounts that it was in breach of that convenant.
It said it had entered into arrangements with its primary financier, the Commonwealth Bank, and the Australian Securities and Investments Commission (ASIC) to subordinate $39 million of the company’s debt.
