City Pacific's First Mortgage Fund "is now up to 10 days late in distributing a monthly interest payment" the
Sydney Morning Herald reported.
"Due to the volume of work and pressure on our staff over the past week, distributions have been slightly delayed but will be paid tomorrow, as advised to investors," a statement supplied to the SMH by City Pacific read.
The monthly interest payments due to retail investors would equal around $6 million. Redemptions from the First Mortgage Fund currently require six months' notice.
Possibly City Pacific depends on the expected investment of $30 million from an unidentified institutional investor that's due to be made into the fund today, or so the financier told the ASX earlier this week.
Meanwhile, the SMH also reported that the proposed buyer of a City Pacific development in Townsville, the Cairns-based CEC Group, said City Pacific jumped the gun on announcing a $30 million sale to the latter of a waterfront development in Townsville.
CEC told the newspaper the company had debt issues of its own.