Blue Star to sell despite likelihood of bonds then being worthless
Blue Star Group has decided to sell the business even though that is almost certain to mean its listed bonds are worthless.
Wednesday, July 25th 2012, 4:53PM
by Jenny Ruth
The company said it has hired Goldman Sachs to undertake the sale process of either the entire business or parts of it "on a going concern basis and with continuing support from its senior lenders."
Blue Star also said director Roger France is retiring from the board from August 1. "The sales process contemplated in the release to the NZX on the evening of June 20, which I fully approve, is now well established," France said in his letter of resignation.
"Given the experience of the other directors, the sale process will be well managed and in these circumstances it is timely and appropriate that I retire," France said.
France is the fourth director to resign, including former managing director Chris Mitchell, since August last year when the bondholders approved a restructuring which included slashing the $137.3 million they were owed to a then net present value of $44 million.
The company says it is preparing its financial statements for the year ended June 30 and that while its divisions continued to trade profitably at the EBIT (earnings before interest and tax) level, "and the board believes the company has performed well relative to the wider print market, the group financial performance remains well below the forecast profitability signalled in the capital bond amendment document."
The bonds last traded yesterday at $1.20 per $100 face value. "In light of the sale process, the board is unsure whether any value will attach" to the bonds, Blue Star said.
|« Perpetual’s Torchlight loan repaid||Rates round-up: July 30 »|
Comments from our readers
No comments yet
Add your comment:
|Printable version||Email to a friend|