hedley resigns as director, page-2

HLG are going to make a statement on Monday about their trading position

ALMOST two years after the publicly listed company bearing his name was born, Tom Hedley has resigned as a director Hedley Leisure and Gaming Property Partners Ltd.

Mr Hedley’s resignation as a director is seen as a further move by the listed hotel and gaming trust to chart a course independent of its major shareholder and founder.

While he remains the majority shareholder of HLG with about 58 per cent of its scrip, Mr Hedley has increasingly been a figurehead since resigning as chief executive officer at the beginning of the year.

In an announcement to the Australian Securities Exchange yesterday, HLG chairman Colin Henson said Mr Hedley told the board "he wishes to focus solely on his substantial private business operations".

Mr Hedley did not return calls from The Cairns Post yesterday.

It is no secret Mr Hedley’s private business – based on his construction company in Cairns – is battling in the economic slowdown as construction around the region has virtually become a hand-to-mouth situation.

Last week, Mr Hedley said business was "just terrible" and said he was sweating on the release of Federal Government stimulus projects in a bid to keep his workforce employed.

It has been a rocky path for Mr Hedley since HLG listed on the stock exchange in August 2007, only months before the credit crunch hit and listed property trust share prices took a hammering.

From a list price of $3.50, the price tumbled as the company fought to reduce its debt levels and stave off speculation that the valuations of the more than 100 hotels and bottle shops in its portfolio were too high.

It has since reduced its debts to satisfy its major lenders .

HLG will deliver a market update on Monday outlining its full-year performance. At the close of trading yesterday it was listed at 27c a share, a fall of 4c on the day.