Waiver not granted at 28 February 2019.
NAB working capital Facility has a review date at 30 April 2019 and expires Oct 2019. Directors want to extend past October 19 but have to negotiate knowing that they are already in breach of covenants. They have $1m in cash left.
The company cashflow forecasts assume all of the issues are resolved, trading improves, waiver is granted and facility is extended.
No waiver - facilities are due and payable, SIL don’t have cash so it’s insolvent unless they find another source of funds.
No extension to working capital facility - it’s repayable in Oct and unless it’s replaced, it’s done.
it’s a big ask to assume they fix everything and improve trading results plus the bank agrees do a waiver and extend (it will be on much less favourable terms than currently). Look NAB might not want to knock them over as they won’t get their money back but let’s not kid anyone - SIL is operating at NABs behest and patience only.
Ann: Half year results, management changes and guidance, page-35
-
- There are more pages in this discussion • 13 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
