Trading opportunity, page-22

Total liabilities of $321m and will go higher before year's end on interest capitalised and shareholder guarantor fees on the finance facility. see below.





Going concern

In December 2013 the Group established a $200m Revolving Cash Advance Facility (“Facility”). The Facility is due to expire on 23 December 2017 (“expiry date”). The Facility is guaranteed by three shareholder guarantors and the shareholder guarantors are entitled to receive a guarantee fee on the expiry date. Interest and commitment fees payable to the bank on drawn debt are capitalised and paid on maturity of the Facility. As at balance date (28 February 2017), there was $45.5m drawn on the Group’s Facility (including capitalised interest and commitment fees), which has increased to $66.2m as at the date of the Directors Report (26 April 2017). The Group had liabilities relating to shareholder guarantor fees of $29.0m at balance date, increasing to $31.0m at the date of the Directors Report. The facility is expected to be drawn to higher levels prior to the expiry date.

The Group is currently seeking to secure an amended or new borrowing facility with extended maturity and expanded size (”New Facility”). The size of the New Facility to be requested by the Group has the potential to be approximately $250m, but depends on the outcomes of a number of factors.