The timing couldn’t be worse: just as the government sends a letter calling SOEs to account, state-owned Kordia slips into the red, and breaches banking covenants as debt surges to $125 million.

In its interim result for the six months ended December 31, 2008, Kordia made a pre-tax loss of $5.77 million, (after tax $9.47 million) compared to a pre-tax profit of $7.76 million for second half of 2007.

Nuplex has confirmed it has breached its debt covenant, as its share price continues to tumble.

At midday Nuplex shares had tumbled 34c or 18.4% to $1.51.

Earlier this month, First NZ Capital warned that the resin manufacturer’s debt covenant may be breached, based on its revised full year ebitda guidance of $NZ85 million.