This article is from the Australian Property Journal archive
ANZ Bank has given Devine an extension for testing the covenant breach.
Last week Devine announced it expects to a book a loss before tax of $34 million for FY15.
As a result of the downgrade, Devine said it expects to be in breach of a covenant relating its consolidated net tangible assets.
A breach of covenant will entitle ANZ to require repayment of the facility on demand.
The covenant regarding loan to value, interest cover and debt to EBITDA ratios were to be tested on 29 February.
Yesterday Devine advised that ANZ has agreed to extend the date for testing of the relevant covenants from 29 February until 31 March.
Meanwhile the developer is working with the bank to identify possible solutions for the breach.
Australian Property Journal
