MFC Bancorp has finally released its results for 2015, after losses incurred by one of its finance and supply chain customers in February 2016 held up the sign-off by its auditors.

“We had to determine an allowance for credit losses against our receivables due from the customer and its affiliates, the provisions under certain guarantees which we had made and the potential recoveries as at December 31, 2015,” the company said.

“As a result, in the fourth quarter of 2015, we recorded total credit losses and provisions of $51.4 million related to this customer and its affiliates, which includes an allowance for trade receivables and provisions for potential future losses. However, we hold various collateral, including guarantees, mortgages and other mitigation securities, to recover a significant portion of these losses. We are exercising our rights as we undertake various options to maximise our recoveries.”

In 2015, the net loss attributable to shareholders from continuing operations was $59.5 million – including the pre-tax losses of $61.3 million related to the insolvent customer and to long-term off-takes that have been terminated.

“Going forward, our vision is to become a regulated trade finance institution, offering our customers and suppliers a wider range of structured finance solutions including factoring, inventory, financing, forfaiting, marketing and other types of risk management and financing solutions,” the company said.

The company made the drastic decision to put core commodity assets up for sale, alongside a $290 million write-down on its iron ore mines and energy assets, and purchase a bank instead, effectively returning to its origins.

In the first quarter of 2016, MFC Bancorp completed the acquisition of Bawag Malta Bank Ltd for €91 million and changed its name to MFC Merchant Bank Ltd.

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