City Pacific

City Pacific (CIY) requested trading halt for its shares after half their value was lost on Monday. Shares fell to 97.5 cents on concerns the Queensland based loan provider will not be able to repay the bulk of a $240 million loan facility which is due next month. The share price plunge also forced City Pacific to seek permission to stop redemptions in its $960 million First Mortgage Fund. The chief executive Phil Sullivan described this as "unbelievable." He added that "We played it clean and straight". The company removed the fund's application form from its website. City Pacific told the ASX it would be in negotiations with three parties interested in buying or refinancing some of its assets.