Delta Property’s going concern status in doubt
Delta is looking to the banks to push out debt repayment dates
Delta Property, which is facing an existential crisis and suffered reputational damage after a forensic report uncovered alleged fraud under previous management, said on Tuesday that its ability to continue as a going concern was at the mercy of its lending institutions.
Delta, whose current liabilities exceeded its assets by R4.1bn in the six months to end-August, is looking to the banks to push out debt repayment dates. Its loan to value ratio, which measures the company’s debt relative to its assets, stood at 54%, which is much higher than a market average of 42%...