Strategic Finance now unsure of first payment

In a letter to investors, chairman Denis Thom said it needs to compete several sales before everything shuts down for Christmas. If this dooesn't happen it is unlikely to have the cash to make the January 7 scheduled repayment.

Strategic may also have to boost its provisioning.

Thom said company's performance is "running behind that contained in our moratorium forecast" as the property market continues to deteriorate and credit lines remain tight.

The company will be able to make its first repayment to investors, provided "a number of specific loans which are currently being intensively work on" are completed, though Thom stressed that Strategic's ability to do so is "entirely based on loans being repaid over the next few weeks."