Beverage company Charlie's Group Ltd said it does not have to raise new capital after reducing its debt and negotiating the removal of a guarantee from the company's largest shareholder.At the end of the financial year, June 30, 2009, Charlie's had debt o
Beverage company Charlie's Group Ltd said it does not have to raise new capital after reducing its debt and negotiating the removal of a guarantee from the company's largest shareholder.
At the end of the financial year, June 30, 2009, Charlie's had debt outstanding to ANZ National Bank of $7.1m. Since then that debt has been reduced to $4.3m. It will reduce to $3.8m on February 28.
The company had negotiated the release of the $5.3m guarantee given to the bank by the company's largest shareholder, Collins Asset Management to support debt facilities.
Chairman Ted van Arkel thanks Collins for its support and said ANZ National Bank had shown confidence in the company in releasing the guarantee.
The company would now be required to be measured against standard financial covenants by ANZ National Bank.
"Last year, Charlie's signalled that it might undertake an equity raising but directors now view this as no longer necessary given the profitable trading of Charlie's and the substantially improved balance sheet," Mr van Arkel said.
Charlie's will report its half year results next Tuesday and did not change guidance today.
