Geo Misses Deadline

The Age

Tuesday April 15, 2008

Danny John

THE debt woes of troubled GEO Property Group, formerly MFS Diversified Group, continue to plague the company after it missed a key deadline to sign a new deal with its bankers.

GEO, which is selling assets to cut its debt by $125 million, admitted it was unlikely to have the paperwork in place before the middle of next week after agreeing on April 1 to be ready by yesterday's signing date.

The company also left the market in doubt as to the exact nature of the deal it has with its lenders despite an optimistic statement released on Friday outlining provisional terms.

In its latest announcement to the ASX yesterday, GEO said its revised deal aimed at reducing its debt from $450 million to $375 million by the end of December and a further $50 million by next July had not gone ahead as planned.

"This has not yet occurred and will not occur today," it said. -- DANNY JOHN

© 2008 The Age

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