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Postie Plus renegotiates banking covenants because of potential breach

BUSINESSDESK: Postie Plus Group has renegotiated its banking covenants with the Bank of New Zealand because there was a possibility it would breach them in October.

"Although it was not clear to Postie Plus Group whether a breach would in fact occur, the company advised BNZ and has now reached agreement with BNZ for a change to the company's banking covenants," the retailer says in a statement to NZX.

The change removed any concern about a breach in October 2012.

In September, the company reported an annual net loss of $183,000 including one-off restructuring costs.

The normalised full-year net profit was $493,000.

Chairman Richard Punter said then that having taken into account the company's financial position and compliance with all banking covenants, directors had decided to pay a final dividend of a cent a share on December 14.