Following a tumultuous 2018 and what has been a tough start to this year, Blue Sky Alternative Investments (ASX: BLA) has informed the market compliance with covenants to its US-based saviour Oaktree Capital remain in limbo.
After posting a net loss after tax of $25.7 million for H1FY19 on 28 February, the Brisbane company announced its covenants may not be met by 31 March due to restructuring efforts that are ongoing.
Last year Oaktree gave Blue Sky a seven-year loan facility worth $50 million, giving it the right to convert amounts owed into shareholdings at a price of $1.87 per share.
The BLA share price is now languishing at $0.46, down 6.12 per cent this morning.
Speaking with Business News Australia, a Blue Sky spokesperson clarified today's announcement was an acknowledgement the 31 March date had passed, and that the group would need two or three weeks to determine whether it was in breach of its covenants or not.
"The Company will shortly be in a position to finalise the accounts for the period ending 31 March 2019 in the ordinary course and will provide an update upon completion," Blue Sky stated.
"The Company continues to have discussions with Oaktree during this process."
Business News Australia
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