The troubled finance company, Hanover Finance reported a half year loss of $102 million. Its operating loss for the year ended June 30, 2009 stood at $283.2 million given to increase in operating costs.

Slump in the property development sector adversely hit its business due to mismatch between property valuations and the market value of assets during the reporting period.

The directors of the firm added that firm’s results were also impacted by changes in International Financial Reporting Standards.

Earlier in December, the shareholders of Hanover Finance overwhelmingly supported its move to operate under a five year moratorium plan under which secured depositors have to repay their
full deposits, the promise that was not met.