Property company Cromwell Group
(ASX:CRM) has withdrawn its proposal for Orchard Fund Management Ltd.
The proposed transaction from Cromwell was subject to key conditions that financiers have failed to approve.
These conditions included the support of key lenders for Cromwell’s proposal to return each relevant Orchard fund to a more appropriate capital structure.
The major financiers rejected the proposals that Cromwell put forward that it believes would enable them to manage the funds in a manner that could best restore lost value to investors over the longer term.
CEO Paul Weightman says the company will continue to look for opportunities to acquire businesses and assets that enhance the current business, with target of 80% of earnings from property rentals and 20% from funds management.
Cromwell reported a loss of $113.51 million for the 2009 financial year.
