NEW LOANS GIVE SLATER AND GORDON A RAY OF HOPE

Written on the 31 March 2017 by Ben Hall

NEW LOANS GIVE SLATER AND GORDON A RAY OF HOPE

EMBATTLED law firm Slater and Gordon (ASX: SGH) has secured approval for two loans totalling $72 million as it continues to try and avoid collapse.

The debt-strapped listed company has entered into an agreement with debt buyers as its new senior lenders with a capitalisation of $32 million on interest payments which are due on June 28, 2017, and a further senior debt of up to $40 million.

The terms of the loans are subject to credit approval and documentation.

"The purpose of the new facility (loan) will be to provide the Company with the working capital headroom required to continue to execute its plan to restore its financial performance," the company said in a statement to the ASX.

"The support of the new senior lenders continues to be fundamental as current levels of bank debt exceed total enterprise value."

The new agreement also includes a share buy-back program with a cash impact of less than $250,000 with a provision that no key management personnel will benefit from the buy-back.

Slater and Gordon has been in financial trouble since midway through 2015 when it acquired the UK firm Quindell, which was a disaster for the Melbourne-based firm, which has lost 98 per cent of its market cap in two years.

Last week, ASIC has cleared Slater and Gordon of deliberately falsifying its accounts relating to its spectacular share price crash after a three-month investigation.

The investigation centred on the accuracy of financial records and accounts of the company for the period between 1 December 2014 and 29 September 2015.

The group is still facing a $100 million class action from rival Maurice Blackburn in the Federal Court.

Business News Australia


Author: Ben Hall

Latest News

WOOLWORTHS CLAIMS LEGAL VICTORY IN STOUSH WITH LOWE'S

SUPERMARKET giant Woolworths (ASX: WOW) has been given the go-ahead to sell its Masters property assets after winn...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

PRICELINE STORE ROLLOUT BOOSTS API'S FULL YEAR PROFIT FORECAST

Australian Pharmaceutical Industries (ASX: API) has booked a rise in half year net profit of $29.1 million on the bac...

CITY DWELLERS SETTING EYES ON REDCLIFFE AS PROPERTY SEACHANGE BECKONS

IT MAY be cool by the sea at Redcliffe, however strong sales at Kyko Group's Mon Komo development prove that t...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter