Cottonsoft makes loss in 2011, receives capital injections
The maker of paper towels and toilet tissue has had cash from its foreign owner after breaching its bank covenants.
BUSINESSDESK: Cottonsoft, the maker of Tuffy paper towels and Kiwisoft toilet tissue, has received capital injections from its foreign owner after breaching its bank covenants in 2011.
The company did not pay a dividend to Asia Pulp and Paper in the 2011 calendar year, for which it reported an operating loss of $2.63 million.
That was wider than the loss of $1.51 million the previous year, mostly because of an increase in operating and distribution costs.
Revenue rose to $80.57 million from $72.83 million the previous year, accounts filed to the Companies Office show.
The bottom-line loss of $2.4 million was wider than that of $2.04 million the previous year.
Cottonsoft makes toilet tissue, paper towels and serviettes from imported paper.
Its accounts show that it breached its bank covenants in 2011 and that an $800,000 term loan was due to mature on July 1, 2012.
A company spokesman says the loan has been paid up and the company has received capital injections from its parent. It received $US1.6 million on July 25, $US500,000 on August 27 and $US900,000 on September 18.
The company has been the target of a campaign by Greenpeace over the environmental sustainability of its paper and by competitor Carter Holt Harvey for claiming its products were New Zealand-made when the raw materials were imported.
The company has $3.35 million of tax losses available to offset against future income tax.
Cottonsoft makes Tuffy Paper Towel and Paseo, CottonSofts and KiwiSoft Toilet Tissue.
Pam Graham
Wed, 11 Jul 2018
Wed, 11 Jul 2018
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Cottonsoft makes loss in 2011, receives capital injections
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