Errrr....these are audited accounts. The auditors would have reviewed all documentation regarding the existing debt facilities, and also the new debt facility. So the covenants as stated in note 18 remain in force based on the assumption that the auditors have done their job properly.
There is in my view, the likelihood that come 30 September, if the company is in breach of its covenants, the very real possibility that it's lenders can force upon the company additional penalties.
If the company has had discussions with its lenders regarding a "release" of the requirement under the covenant, then this is material information and should have been included in the notes to the accounts.
Either the auditors are not doing their job properly, or the Company may be headed for discussions with its lenders again to relax the covenant.
In either case the company needs to update the market on this matter.
AJM Price at posting:
23.5¢ Sentiment: Sell Disclosure: Not Held
