Kimberly Enterprises has continued to dispose of its property interests and simplify its corporate structure but had negative equity of €21.7m at the end of the nine months to 30 September.
The company says that following the sale of its Canadian property interests, it completed the disposal of its investment in the wholly owned subsidiary, Arces International to a third party for an immaterial amount on 15 July.
In addition, the company has continued to sell residential units from its Veleslavin project in the Czech Republic.
During the nine month period to 30 September, the company completed the sale of 27 units.
In the third quarter, the company repaid €1.45m of its debt to Engel Resources and Development Ltd. As of 30 September, the outstanding debt to ERD stood €25.0m and is due by 31 December.
The company says it is reliant on the continued support of ERD to extend the repayment date of its loans to Kimberly beyond 31 December 2016.
A trading update says: "Further to the announcements released on 6 June 2016, the termination of the lease agreement between Marina Dorcol d.o.o (a 95% owned subsidiary of the company) with the Municipality of Belgrade has resulted in a non cash income of €23.5m, which has been recognised in profit and loss under 'other income' in the company's condensed consolidated financial statements.
"Management expects that following the termination there will also be a net cash inflow from the above restitution, however, the net cash flow and the timing to conclude the settlement with the Municipality cannot be predicted at this stage with certainty.
"Based on the advice received by MD, the range of the restitution is likely to be between €2.7m to €3.9m, although there is no certainty of the amount that MD will be able to settle with the Municipality.
"For the nine month period to 30 September 2016, after recognising the €23.5m non cash income set out above, the Group had post tax profits of €22.7m. As at 30 September 2016, the Group had current liabilities totalling €27.8m, which exceeded its current assets which amounted to €5.3m, and had negative equity of €21.7m."