The Rubicon Europe Trust has declared insolvency after unveiling a loss of almost A$1bn, bringing a spectacular end to the latest listed trust in the failed Rubicon property behemoth.
In its delayed full-year accounts, the trust, which owns the global headquarters of footwear giant Nike, wiped A$580m from the value of its property investments, preparing its accounts on a 'liquidation basis'.
The group revealed it had debts of A$1.143bn against assets of just $785m, signalling creditors, which include NAB and Credit Suisse, stand to lose millions, with secured bank loans worth $964m.
'The directors believe that Rubicon Europe would be unable to pay all of its debt even if all assets could be sold in a willing but not anxious seller environment,' said the accounts, prepared by PricewaterhouseCoopers. 'They do not consider the group to be a going concern.'