"The Group has a bank loan for $2.2m for the acquisition of Geoscience Associates Australia Pty Ltd which was drawn down as at 1 October 2009. The loan is secured over the property, plant and equipment of GAA. According to the terms of the agreement, the loan is repayable over 4 years. The loan contains a debt covenant stating that for each quarter the Group's debt service cover ratio (defined in the loan contract as EBITDA / interest + principal paid) is not to be less than 2.5 times.
The Group's profitability over the nine months since 1 October 2009 was affected by acquisition accounting entries, reduced revenue over the traditionally quieter holiday period in December and January, heavy rainfall the first quarter of 2010 and general uncertainty in the industry due to the proposed mining Resources Super Profits Tax.
The Group applied for a waiver for the June 2010 quarter breach and received a letter of non waiver in September 2010, which indicates NAB will not be taking action at this point in time but does not waive or give up its rights. Waivers were received for the December 2009 and March 2010 quarters. Under the relevant accounting standard, because of this breach, the whole loan amount is classified as a current liability at reporting date; this classification does not reflect the maturity schedule of the loan. "
That enough searching me at the moment :-)
Source: UXA ASX announcement Full Year Statutory Accounts 10/09/2010
UXA Price at posting:
1.0¢ Sentiment: None Disclosure: Held