Sharechat Logo

Wakefield discovers past banking covenant breach, now remedied

Friday 18th November 2011

Text too small?

Wakefield Health said it had discovered a past breach of the shareholders' funds covenant within its agreement with its bankers which has since been remedied.

The private hospital operator said it discovered the breach when finalising its compliance reporting to its bankers, Westpac and Bank of New Zealand, and sought a waiver which was granted by both late yesterday.

The breach arose from the way the covenant deed was drafted, the company said.

“Wakefield is currently in discussions with its bankers regarding a change in this documentation to deal with an anomaly that has emerged in relation to the inclusion of the company's investments in associates and joint venture holdings,” it said.

Wakefield's $15 million capital raising completed earlier this month to help cover the cost of its $24.2 million takeover of Norfolk Investments which owns 60 percent of the Grace Hospital in Tauranga and its purchase of 30 percent stakes in Endoscopy Auckland and Laparoscopy Auckland has remedied the breach, it said.

“Wakefield was unaware of this issue throughout the capital raising process.”

Wakefield shares closed yesterday at $4.85, up from their recent $4.60 low which was their lowest level since mid-2005. The shares have been trending lower since peaking at $10 in August 2009.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

Stewart, Royston Hospital Trust sew up control of Wakefield Health
Wakefield Health to change name to Acurity
Wakefield 1st half net profit up nearly 33%
Wakefield reports buoyant start to the year but expects weaker second half
Wakefield warns of further quake-strengthening costs
Wakefield Health to tap investors for $15 mln to pay for acquisitions
Wakefield spends $6.8 mln on specialist Auckland clinics
Wakefield Health mails out bid for Norfolk
Daily ShareChat: Wakefield Health
Wakefield bid for Norfolk stumbles again