Ann: Trading Halt, page-15

I believe they have around 10 million in cash on the balance sheet as of the annual report?

Underlying revenues for the half were around 33 million? coming off a low base and now with growing enrolments.

Debt of circa 11 million. Minimum repayments of 3 million over 12 months and then 4 million in August 2016.

Looking at the balance sheet there was the 8 million owed to HESG but I thought that was already paid?

Says the next quarterly 'test' would be 31st of December.

What does everyone think is happening here?


From the Annual Report:

The key components of the amended Facilities Agreement are the reduction of the facility to $12,500,000 ($11,000,000 under Facility A and $1,500,000 under Facility B), a new, extended maturity date of 28 February 2017 (previously 30 May 2016), and minimum mandatory repayments of $3,000,000 over the next 12 months and $4,000,000 repayment in August 2016.

The consolidated entity is required to provide regular reporting to the MLAs on, among other things: financial performance; cash balances and cash flows; and status of litigation, disputes, and regulatory matters. Financial covenants have been aligned to the Turnaround Plan milestones and include: (i) a cash balance test; and (ii) normalised EBITDA test (each quarter from 30 September 2015 onwards).

Over the past seven months the consolidated entity has streamlined its business portfolio to better align with its capital structure, generating divestment proceeds of $84,000,000 (excluding deferred and contingent consideration). $73,000,000 of the disposals proceeds was used to repay the bank debt. This, in addition to repayments of $36,000,000, has resulted in gross debt being reduced from $120,000,000 in early December 2014 to its current level of $11,000,000 million as at 30 June 2015. As the Fourth Amendment Agreement was finalised subsequent to year end, the outstanding balance of Facility A of $11,000,000 has been classified as current liabilities.