Earlier this month, CityView informed the market its loan "may not be recoverable in full". Yesterday, the company told the market it was monitoring the situation closely and will provide further details as it "obtains a better understanding as to likely recovery with the respect to the secured debt."

In January 2000 CityView announced it had taken a 10% stake in Sands Solution, an entity associated with former CityView CEO Mark Smyth, for $5 million. In July 2001 CityView said it had advanced $2,750,000 to Sands Solutions on commercial terms secured by a registered fixed and floating charge over the assets of Sands Solutions.