Photon Group: negotiations are ‘complex, fluid and interdependent’
Photon Group has drawn down $274m of its $280m debt facilities and will be unable to meet a $46m earnouts bill due at the end of the month after next if it cannot recapitalise or restructure what it owes, the company has said in an update to the ASX giving a more detailed timetable of its outlook.
The statement from Photon Group – which gives plans for its expected timetable of recapitalisation and return to the ASX – came five days after the troubled holding group’s last update in which it confirmed it was looking to raise $100m and persuade agency bosses to renogotiate its earnout liabilities to them.
Photon, whose shares have been suspended from the ASX since June 9, told the market:
“Negotiations with various third parties as part of the capital structure review are complex, fluid and interdependent.”
It said that “positive progress” was being made but that negotiations were “ongoing and incomplete”.
The statement said that the ASX had been asked to leave Photon Group shares suspended until August 18. The company committed to revealing details of its capital structure review and formally begin its capital raising on August 16 which would give time to complete it before the September 30 deadline.
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Jesus. No wonder Belgo is a cranky bastard.
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The latest ASX release seems to hint at insolvency: a signal to the banks to extend credit to help pay outs otherwise they’ll have a really big mess on their hands.
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Hi anon,
For what it’s worth that wasn’t my interpretation – it’s starting to feel to me like they’re going to just get through it.
Cheers,
Tim – Mumbrella
I hope they do, a huge amount of people in the industry could be affected.
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and think of the poor bastards who were paid millions of dollars (literally) to create this mess. they will, of course, being giving some back to help pay the earn outs. LOL.
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steady as she goes…. sounds to me like small but important steps forward are being made
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