December 29, 2008 / 8:36 AM / 11 years ago

UPDATE 2-Austria's Immofinanz H1 hit by unit writedowns

* H1 EBIT loss 1.85 bln euros vs profit 431.6 mln

* Immoeast unit revaluations and writedowns hit results

(Adds shares, detail from report)

VIENNA, Dec 29 (Reuters) - Troubled Austrian developer Immofinanz (IMFI.VI) reported heavy first-half losses on Monday after it was hit by revaluations and writedowns at subsidiary Immoeast IMEA.VI.

Immofinanz, which has said it needs 110 million euros ($156.4 million) by the end of the year to keep afloat, reported a loss before interest and tax (EBIT loss) of 1.85 billion euros compared with 431.6 million euros profit a year ago.

Losses before tax (EBT loss) dropped to 2.65 billion euros in the first half of 2008/2009, Immofinanz said.

Earlier this month Immofinanz presented its six main creditor banks with a plan to restructure the company. It said on Monday the banks had agreed in principal to grant the necessary financing but are still evaluating the measures.

On top of the money it needs before the end of 2008, the company has said it also needs another 150 million euros by the end of April to avoid a liquidity crunch.

Immofinanz is also having to deal with a police probe on suspicions of fraud and breach of trust and said on Monday it fully backed the investigation.

Immofinanz shares, which are highly volatile and have crumbled into penny-stock territory since the start of the year, were trading up 10 percent at 45 euro cents by 0917 GMT.

The company, which ousted its CEO and CFO earlier this year, did not give a full earnings outlook on Monday but said the financial crisis will continue to hit the projects pipeline while slower growth is expected to affect demand in the rental and logistics segments.

Immofinanz unit Immoeast, which focuses on central and eastern European markets, this month posted a 1.8 billion euros pretax loss in its second quarter to October, triggered by downward revaluations in its real estate portfolio and writedowns due to halted development projects. (Reporting by Sylvia Westall; Editing by Jon Loades-Carter)

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