This article is from the Australian Property Journal archive
TRINITY Group has secured a short term reprieve from its senior lender, National Australia Bank.
Yesterday the Queensland funds manager said NAB has granted an extension of the testing of its existing 70% loan to value ratio covenant from March 31 2010 to May 31 2010.
All other debt covenants remain unchanged.
Trinity said the extension will give the group time to continue to work towards the execution of its various capital management strategies and initiatives to ensure the company’s ongoing compliance with its future debt covenants.
Earlier last month, Trinity’s auditors PKF pointed out that the group had a net deficiency of current assets at December 2009 of $18 million, incurred losses of $38 million for the half year.
The auditor then pointed out that the group was at risk of breaching its loan covenants within the next 12 months if actual transactions and events result in cash flows which are insufficient to meet the senior debt financier’s requirements.
“These conditions states the existence of a material uncertainty which may cast significant doubt about the ability of the group to continue as a going concern and therefore, whether the group will realise its assets and extinguish its liabilities in the normal course of business,” PKF said.
Trinity CEO Brett Heading reassured investors that the group was stable despite the concerns of the auditor.
Australian Property Journal
