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Forge Media defaults on loan covenant

Listed Forge Media Group has received a notice of default of a loan agreement covenant with its primary financier, Lock Finance.Auckland-based Forge does graphic design, marketing planning and promotion, website development, digital and offset print, and

NZPA
Tue, 30 Nov 2010

Listed Forge Media Group has received a notice of default of a loan agreement covenant with its primary financier, Lock Finance.

Auckland-based Forge does graphic design, marketing planning and promotion, website development, digital and offset print, and CD, DVD and USB replication.

Chairman Chris Due said the company's loan facility terms with Lock Finance contained a covenant that "management accounts are to be within 10 percent of the budget". There were no other covenants.

Lock Finance had issued a notice of default related to management accounts for October, when sales were 11.6 percent lower than budget although net profit for that month was 3 percent above budget.

It is probable Forge would be in default of its revenue and profit covenant to Lock Finance in November based on latest forecasts, Mr Due said.

Lock Finance had advised it was considering its position following the event of default.

Forge today also reported revenue of $2.7 million for the six months to September, down 1 percent from a year before.

Operating loss after tax was $351,000, compared to a loss of $238,000 a year earlier.

NZPA
Tue, 30 Nov 2010
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Forge Media defaults on loan covenant
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