This article is from the Australian Property Journal archive
EMBATTLED residential developer Devine has secured certainty in its future for at least another 12 months.
Devine yesterday announced that ANZ Bank has extended the expiry date of its multi-option facility (ANZ MOF).
Devine had been negotiation to extend the expiry date since December last year.
ANZ has granted an extension of 12 months from March 31 2017 to March 31 2018.
At the same time, ANZ has also given Devine reprieve with testing of financial covenants extended to March 31 next year.
ANZ decision has given Devine certainty for the next 12 months.
In its annual result, Devine said there was uncertainty as to whether the group can continue to operate as a going concern because its debt exceeded assets.
As at 31 December 2016, the group had net assets of $175m (2015: $213m) and current liabilities, including the senior ANZ MOF balance which exceeded current assets by $1.9m (2015: $0.9m).
The group had drawn debt of $22m (including bank guarantees) under the ANZ MOF, which has been classified as a current liability due to its maturity being 31 March 2017. The current $22m net exposure of the group to ANZ in relation to the ANZ MOF is secured by assets valued in excess of the debt amount.
Devine announced a loss after tax of $37.88 million for the year and revenue fell by 16% to $225.43 million.
Australian Property Journal
