Sharechat Logo

IRG resolves bank covenant breach row

Thursday 20th August 2009

Text too small?

Investment Research Group, the NZAX-listed investment vehicle, has reached agreement with its bankers, following a breach of banking covenants that prevented the company filing annual accounts and led to a share trading suspension.

"We have today signed a letter of offer with our Bank confirming the ongoing funding of the business," King said. "The issue arose due to differing interpretations on the ratio definitions.

"This matter has been resolved and the bank has agreed to a proposal that we presented to them. As part of the agreement, the bank has provided a Waiver of Breach and hence we are now in a position to finalise the annual accounts."

The shares were suspended in early August when the issue first arose and can resume trading once the annual accounts are filed, which will occur "as soon as practical", King said.

King told BusinessWire that neither party had sought to press the issue of fault, preferring to find a way through the issue.

The company still planned to raise $500,000 to shore up its balance sheet, but this was not required "to get these numbers right", King said. Reports earlier in the month said IRG required the additional funds to remedy the breach.

Businesswire.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

IRG sells Auckland advisory business to Forsyth Barr
IRG full-year loss widens to $1.1 mln as costs rise; assets under review
IRG to sell assets, retain listed shell, King mulls bid
IRG advising second company on potential NZ listing
Investment Research Group posts first-half loss, predicts better second half
IRG acquires Sharechat
IRG suspended on overdue full-year accounts
Investment Research Group borrows money off CEO, talks to banks about trimming payments
IRG to seek cash injection via rights issue
IRG completes capital raising with 1.1 million sale, 'aggressively' placed for the future