Debt is a fast breeder on the Packer family's cattle stations

AUSTRALIA - Awash with red ink, groaning with debt and bleeding interest repayments - it is hardly the image associated with a Packer family company.
calendar icon 7 January 2007
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But that sums up Consolidated Pastoral Co, operator of the Packer family's rural holdings of 5 million hectares — about three-quarters the size of Tasmania.

The company had a loss of $36 million, according to its 2006 annual financial statement, released by the Australian Securities and Investments Commission last month. This was up from a loss of about $30 million the previous year, and the latest in a series of accumulated losses totalling $287 million.

The accounts show the company's bank debt grew almost $50 million to $745 million during the 2005-06 year, requiring almost $45 million in interest payments.

Adding to this parlous picture, the revenue the company reported from the sale of goods for the year was a meagre $375,000. The vast bulk of the $33 million in reported revenue came from a $30 million book entry recognising the improved value of livestock.

Source: Sydney Morning Herald
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