MFS Living and Leisure's failed takeover bid for Tourism Holdings cost it $10.3 million - more than eight times what it initially thought.
The figure has been revealed in overdue half-year results from the dual-listed Australian tourism operator.
The company, which has since changed its name to Living
and Leisure Australia Group, has been suspended from the NZX since March 10 for failing to meet a February 29 deadline for presenting its results.
Its half-year financials show it made a loss of $13.9 million in the six months to December 31 - a big drop from the $16 million profit it made in the previous year's corresponding period.
The main reasons for the loss were one-off items including the failed bid and an impairment writedown of $18.3 million for its ski fields.
Living and Leisure made an offer of $2.80 for Tourism Holdings in June last year but narrowly missed out on acquiring the business after acceptances for the offer fell just short of the 90 per cent target.
Afterwards the then chief executive Marshall Vann told the Herald the bid had cost the company $1.3 million. But the overdue results released late on Thursday show the actual cost to the firm was much higher, and the group remains in serious financial strife.
Living and Leisure has been trying to refinance and sell off assets since February when it revealed a $209 million secured loan was due to expire on May 30 as well as unsecured loans to MFS and its associate companies.
It was approached by Village Roadshow to buy some assets but could not reach an agreement.
The group said there was significant uncertainty around whether it could complete negotiations to either sell assets or refinance.
"Consequently, there is significant uncertainty as to whether the group will be able to continue as a going concern, and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report," the company said.
However, it expected to make an announcement by April 18 in relation to various proposals and trading would resume after that.
Living and Leisure owns ski resorts, aquariums and treetop walkway attractions in Australia and the US and has plans to build an $18 million treetop walking near Lake Brunner in the South Island.
