Dorchester Pacific's accounts will take a hit from its 25 percent holding in St Laurence Ltd but the company hasn't decided how much yet.
St Laurence has withdrawn its prospectus and announced its intention to present a repayment plan to its investors for approval. It has 9000 debenture holders owed around $240 million .
St Laurence Ltd has also advised that it made a $29.8 million pre-tax loss for the quarter ended June 30.
Under equity accounting rules Dorchester will be required to reduce the carrying value of its 25 percent holding in St Laurence in its accounts. The carrying value was $21.3m as at March 31.
Dorchester said it would not be in a position to quantify the extent to which that value has been impaired until after St Laurence's proposed scheme has been finalised and voted on by its investors.