Thursday 27th August 2015 |
Text too small? |
Cavalier Corp, which is restructuring its business to revive its earnings, expects to cut debt by $6.5 million from the sale of its Ontera Modular Carpets unit.
The Auckland based company flagged the sale to Australia's Milliken & Co earlier this month, and anticipates the deal will settle in one or two weeks, it said today. The deal is conditional on key Ontera employees accepting jobs with Milliken and the transfer of certain contracts and leases to the Australian company.
If the sale goes ahead, Cavalier said it's expected to release about $6.5 million, which will go towards the company's debt reduction programme.
Earlier this month, Cavalier said it had already lowered bank debt by $6 million, and is looking at asset sales, job cuts and outsourcing to try and lift profit.
As at Dec. 31, Cavalier's net debt was at $59.1 million, and the debt to equity ratio stood at 39 percent, a level it called "too high".
The shares last traded at 41 cents, and have dropped 33 percent this year.
BusinessDesk.co.nz
No comments yet
Second St John withdrawal of labour takes effect tomorrow with further strikes likely
Sanford Appoints Independent Director
CRP ADVISES CLOSURE OF SHARE OFFER TO EXISTING INVESTOR
Devon Funds Morning Note - 14 August 2024
OCR 5.25% - Monetary restraint tempered as inflation converges on target
Consumers still need due diligence as new deposit takers emerge.
Woolworths strike: staff asked to dress up in Disney costumes for a week on their own dollar
Turners Invests in Quashed Online Insurance Platform
PGW Reports on Challenging Year
Arvida Announces Executive Team Changes