(spill From Page 2 )write-off On The Cards

The Age

Tuesday June 29, 2004

Mr Hazel denied reports of disunity among the major shareholders: Albany Bay RV, owned by Primelife chairman Robert Champion de Crespigny and fellow businessman Ronald Walker; and directors Phil Green and Robert Topfer of investment bankers Babcock & Brown.

Asked whether Primelife intended, as rumoured, to terminate projects under way or in final planning stages, Mr Hazel said the projects would continue.

The possible irregularities in the former TR94/24 syndicates came to light in a review of operations due to be finalised before the August profit announcement. The board intended to use the occasion to announce its new strategic direction, which will include details of how much it intends to raise from the market.

Aggregate value of the 23 syndicates is $130 million and if some have to be wound up the company conceded it might bear heavily on its liabilities. The statement said that the review was seeking to realistically assess its net liability exposure.

Primelife has previously used its $1 billion development pipeline as a major selling point to institutional investors and it helped the company raise $18 million late last year.

© 2004 The Age

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