Provisions do not hinder payments, says Dorchester

Provisions do not hinder payments, says Dorchester

It has been forwarded by Dorchester Pacific executive director Paul Byrnes that even though after adding more than $8 million to the company’s provisions for loan losses in the past six months, the company still hopes to meet its obligations to Dorchester Finance investors.

Already the company has got the next couple of payments hoarded away. It should be noted though that whether the provisions will affect repayments over the next year or two will come down to what happens when the loans are actually realized.

Approximately, $7 million of the extra provisions relate to property loans.

It was specified by Mr. Byrnes that since his company hopes to eventually secure better prices than the current valuations, it does not have to sell any of the relevant properties immediately.

Mr. Byrnes said, “We could dispute some of those valuations but we’d rather take a conservative view. What will really count will be what we realize those loans and properties for over the next 30 months.”

It was today confirmed by Dorchester Pacific that following recognizing a $30 million gain from revaluations of debenture liabilities, it estimates to report a $25 million loss for the year to March 31.

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