News: ALQ ALS Ltd updates on debt reduction and likely non-cash impairment charge

Feb 29 (Reuters) - ALS Ltd (ALQ) :

• Debt reduction and likely non-cash impairment charge (ALQ)
• Advises that it is likely to incur a non-cash impairment charge of approximately $330 million before tax in the current financial year ending 31 March 2016
• Impairment will have no impact on the company's borrowing covenant levels or its ability to pay dividends
• In the period since equity raising successful in applying $183 million net proceeds raised to repayment of short term and long term borrowings
• Says debt reduction will save $5.5 million in interest expense per annum
• Has reduced its committed bank debt facilities by USD160 million to USD80 million saving about $1.3 million per annum in undrawn commitment fees
• "ALS expects current restructuring activities will see its oil & gas division generate a small profit in FY 2017"
• Mid-term expected performance of oil & gas division will not likely support the carrying value of the intangibles in the division
• 'Says "als' upstream oil and gas businesses continue to operate in a very challenging market "