Geneva says BOS reconfirms $35m facility

Geneva Finance, which breached its bank covenants in September, says it has reached agreement with BOS International over the $35 million facility.

Friday, November 28th 2008, 4:31PM

by Jonathan Underhill

Agreement has now been reached on commercially acceptable terms, including an ongoing process of review of performance against agreed milestones, the company said in a statement. The first review is scheduled for March.

“This is another significant positive step in the repositioning and rebuilding of the Geneva brand and there is no doubt that this outcome is in the best interest of all stakeholders,” said spokesperson Kruger Venter.

The firm posted a $7.9 million loss in the 12 months ended March 31, 2008, after closing its branch network to cut costs.

Geneva has divided its loan book in two, with the new ledger comprising people with better credit records and the old made up of lower quality loans. As at September 30, old ledger loans were $43.7 million, or 43% of the total. The company has a moratorium on some $138 million of deposits.

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