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Mad Butcher owner Veritas in talks with bank to reschedule loan payments

Tuesday 30th August 2016

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Veritas Investments, the owner of the Mad Butcher franchise and Nosh food market outlets, is in talks with its bank over the terms of its debt but believes it can continue as a going concern even though liabilities are three times more than assets.

Notes to its annual accounts, published late on Monday, show it had current liabilities of $21.4 million, while assets amounted to $6.8 million in the year to the end of June 2016.  

The Auckland-based company posted an unaudited net loss of $4.59 million, with total losses from significant operations, operations held for sale and discontinued operations of $7.75 million. 

"The board acknowledge that there are uncertainties relating to rescheduling its debts repayments to the ANZ Bank," the notes say. "These may cast doubt over the ability of the group to continue as a going concern." Still, "the group is proactively managing its relationship with the ANZ Bank...and has received positive reassurances from the ANZ that they are willing to reschedule the repayment terms, upon agreeing with the group certain milestones."

The annual accounts also show ANZ Bank agreed to accept a reduction in monthly loan payments from July to September 2016 to $200,000 from $415,000. The bank advised Veritas that it will provide a term sheet reflecting a rescheduling of the group's repayment terms. 

In total, Veritas has to repay $16.5 million within the next year, and a further $16.7 million is due beyond that. Within that $16.7 million, $13.5 million falls due in November 2017. Debt of $3.3 million is due for repayment on a month by month basis to September 2019. 

Shares in Veritas were unchanged today at 47 cents and have fallen 2.08% since the start of the year. It has a market capitalisation of $20.3 million, well below its total borrowings.

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