Embattled investment manager City Pacific will try to bail out investors whose money is stuck in its flagship City Pacific First Mortgage Fund (FMF).
The Brisbane-based firm is considering a number of proposals in an attempt to allow investors to redeem from the $1 billion worth FMF.
One such proposal under consideration is to allow FMF investors to swap their units for City Pacific shares.
"This will provide the FMF investors with liquidity and an ability to exit at will through the share market," a City Pacific statement to the Australian Securities Exchange said on June 6.
However, the company's shares slumped to an eight-year low on the announcement.
City Pacific's stock was worth $4.14 a year ago and closed at 54.5 cents when trading finished on Friday.
The company halted redemptions on the FMF after its stock plunged 49 per cent on March 3 due to debt concerns.
FMF has been one of the main income streams of the company and owes $180 million to lenders by July 31, 2008.
The fund has continued to pay monthly distributions to its unit holders, the statement said.
