NEW LENDERS THROW SLATER AND GORDON ITS SECOND CAPITAL LIFELINE

NEW LENDERS THROW SLATER AND GORDON ITS SECOND CAPITAL LIFELINE

LENDERS have thrown Slater and Gordon (ASX: SGH) another lifeline in the form of a new $40 million working capital facility which will operate on a three-year term.

The agreement was executedlate last week to give Slater and Gordon working capital headroom as the troubled firm climbs its way back to square one financially.

This follows Slater and Gordon's market update late last month that it had secured approval for a further $72 million worth of loans from its debt buyers.

As of 17 March, more than 94 per cent of the firm's debt had been traded from its original syndicate of lenders to secondary debt buyers.

In addition, on 31 March the company announced it had executed a share buyback from its legacy employee ownership plan which was introduced in 2007.

It seems Slater and Gordon is continuing to chip away at its enormous debt facility which, only a few weeks ago, was declared to be worth more than the company itself.

Following its ill-informed acquisition of UK firm Quindell in 2015, the company has racked up a total debt in excess of $1 billion and has lost around 98 per cent of its total market cap.

The firm is continuing discussions with its lenders on a long-term recapitalisation structure and assures it will update the market in due course.

Final discussions with the new senior lenders will be successfully concluded in the next few weeks.

Business News Australia

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Netflix NT drama series Territory to debut in October

Netflix NT drama series Territory to debut in October

Netflix is set to launch its next blockbuster Australian drama seri...

American Express to pay $8m fine over inappropriate targeting of co-branded David Jones credit cards

American Express to pay $8m fine over inappropriate targeting of co-branded David Jones credit cards

American Express Australia (Amex) has been ordered to pay an $8 mil...

Results from Juukan Gorge show 47,000 years of Aboriginal heritage destroyed in mining blast

Results from Juukan Gorge show 47,000 years of Aboriginal heritage destroyed in mining blast

Aboriginal and Torres Strait Islander readers are advised this arti...

From Michael Hill to Adore Beauty, retailers rise on positive sales results

From Michael Hill to Adore Beauty, retailers rise on positive sales results

A handful of retailers including jeweller Michael Hill Internationa...