Mariner Financial turns to deconsolidation
Mariner Financial has announced the deconsolidation of its struggling Mariner Treasury business and will likely do the same with two of its property trusts after admitting in September that its business model was no longer sustainable.
In a statement to the Australian Securities Exchange, the company said it believed the Mariner German Property Trust and Mariner Japan Property Trust, which are both owned by Mariner Treasury, should be deconsolidated due to the aggregate value of the trusts’ assets decreasing by $18.5 million since June 30.
An earlier announcement revealed that receivers and managers had been appointed to Mariner Treasury, a wholly owned subsidiary of Mariner Financial.
The company indicated that the impact from deconsolidating the two trusts would be a reduction in net assets of $900,000 for the group, bringing its balance sheet to $62.9 million (based on its June 30 results).
In reporting its full year results for the last financial year, Mariner Financial said in September that “the market deterioration has greatly impeded the company’s ability to create a satisfactory long-term scalable business operation”.
“This business model is not sustainable in the current environment.”
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