Sharechat Logo

E-Force awaits bank decision

By Phil Boeyen, ShareChat Business News Editor

Tuesday 6th March 2001

Text too small?
Troubled tech company E-Force (NZSE: EFC) expects to hear within ten days whether its bank will support its restructuring plans.

Late last year E-Force closed its loss-making web portal and announced plans to restructure. It has been concentrating meantime on its international procurement business, PSI

The company has been in a cash-flow crunch from it head lease rentals in Christchurch, which it claims are significantly above market. The income from sub-leases have not been enough to cover the company's costs.

E-Force chief executive, Bill Farmer, says the company has been considering a number of restructuring options.

"At present the company's bank is considering its position in regard to the options that have been put before them by the company's board."

Two of the company's directors have today announced their resignation from the board.

Guy Cook is stepping down because of time constraints, while Warren Bird says he is resigning of possible conflicts in regard to options being investigated for the company that could form part of the restructuring proposal.

Bill Farmer says until any response has been received from the company's bank and E-Force makes a further announcement, trading in its shares should be considered speculative.

The company's stock has been trading around 3 cents per share.

  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.