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Monday 9th March 2009 |
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The Auckland-based manufacturer has retained Bancorp NZ, First NZ Capital Securities and accountants McGrath Nicol to help "determine its medium and short term capital needs in the current economic and trading environment," it said in a statement.
A declining New Zealand dollar has lifted the value of its overseas debt and "combined with lower earnings has meant that Nuplex must renegotiate the covenants in its current facilities with its banks," in particular its senior debt cover ratio requirements, the company said.
Bancorp and First NZ Capital will give advice on capital raising while McGrath Nicol will review Nuplex's forecast and current financial position, the company said.
Shares of Nuplex have tumbled since the company's February 19 announcement that it was in talks with its banks to ease terms of its bank facilities.
Nuplex has paced a slide in the shares of companies that have expanded in the Northern Hemisphere, where the downturn has been more severe, taking on debt to buy assets at higher prices that they may pay today. Fisher & Paykel Appliances has slumped 61% this year and Rakon has declined 24%.
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