Listed property company Irongate is in breach of its banking covenant with Westpac after it failed to make a $1.5 million payment yesterday and is borrowing more from funder Bluestone to make up the shortfall.Irongate recently extended its banking facilit
Listed property company Irongate is in breach of its banking covenant with Westpac after it failed to make a $1.5 million payment yesterday and is borrowing more from funder Bluestone to make up the shortfall.
Irongate recently extended its banking facilities with Westpac to the end of this year, with a $1.5 million payment due on October 14. The failed payment meant the company also breached its trust deed.
It blamed the lack of payment on “a delay in documenting a further funding line with TEA Custodians (Bluestone)”.
Bluestone lent the company $45 million recently and is in exclusive talks to take over its management contract.
Irongate chairman Kevin Podmore who was also a director of its failed parent company St Laurence which is now in receivership, said funding was on the way.
"Irongate is well advanced in the process of arranging the funding to make this repayment, but this requires the consent of its Trustee, Perpetual Trust Limited, before it can occur,” Mr Podmore said.
“We expect the necessary consents will be granted and waivers obtained for this non-payment."
