IRG breaches bank covenants

Wednesday 5th August 2009

Investment Research Group, a financial services company that is overdue in filing its annual accounts, said it was in breach of banking covenants as at March 31.

“The company’s bankers have advised the company that in terms of these accounts the company is in breach of its banking covenants in respect of shareholders funds and interest cover,” managing director Brent King said in a statement.

IRG, as the company is known, requires about $500,000 of additional capital to remedy the breach of its shareholders funds covenant, it said. The firm, which has a market capitalisation of $2.79 million based on its current share price of 2.8 cents, is currently trading profitably and isn’t in breach of its interest cover ratio for the current year, it said.

King’s statement said IRG is reviewing options for raising additional capital. The breaches mainly reflect write-downs in the year through March, it said. Since balance date, it has raised additional capital and sold assets.

The bank doesn’t plan to take action “at this time” while the company is in talks, the statement said. It has asked IRG to submit proposals by August 10.IRG’s full-year accounts were due to be filed by July 31. It expects to file to the NZX by early next week. The shares have fallen 72% in the past 12 months.

Businesswire.co.nz

Comments from our readers

No comments yet