By Ian Neubauer
Hedley Leisure and Gaming and Gaming Property Fund (HLG) has advised it is closely monitoring troubling financial developments at National Leisure and Gaming (NLG), which leases 32 hotels from HLG.
“At this stage, NLG has made the lease payments required under the relevant lease agreements,” the Hedley group said in a statement.
“In the unlikely event that NLG defaults under one of its leases, HLG has appropriate rights to ensure that the property is re-leased and that HLG does not suffer financial losses.”
NLG’s shares were placed in a trading halt at the company’s request last Friday after falling to a record low of 8.5 cents. The fall was the result of 32 per cent profit downgrade for the 2007-08 fiscal year, and a botched $26.5 million rights issue that forced NLG to stop refurbishment work on 31 licensed premises in NSW.
NLG shares remain frozen at 8.5 cents. HLG shares are trading for $1.57, less than half their issue price of $3.43 a share.