Great Pacific goes under

Property finance company Great Pacific Capital has called in an administrator after directors gave up on a protracted attempt to recapitalise the struggling company.

Great Pacific, which was headed by executive chairman Alfred Wong, ran into trouble in 2006 when its biggest debtor failed.

The business, which provided subordinated loans to developers, was able to restructure its debts in 2007 and turned a $13 million loss in 2006 into a $5 million net profit the following year.

However, it was never able to restore positive operating cash flow and was not able to attract new investors to recapitalise the business. In May 2008 it was suspended from official quotation in the Australian Securities Exchange.

The administrator, Murray Godfrey of RMG Partners Business Solutions, said the company had been dormant for some time. Its only tangible asset is its Sydney office fitout.

Godfrey said he was looking for a buyer for the shell. Creditors include related parties, owed $1.2 million, and funder LM Investments, which is owed $9 million.