paperlinx investors pressure company

Paperlinx investors pressure company

5 Aug 2013 | Nick Bendel |
A Paperlinx investors group has hinted it will call for changes to the board at an upcoming webinar.

Paperlinx PIGS, which represents hybrid securities holders, will hold a webinar on 13 August before the paper merchant publishes its 2012-13 results and a second webinar on 27 August after the results have been released.

The webinars will discuss the future of Paperlinx and its hybrid securities, and will also be relevant to ordinary shareholders and other stakeholders, according to group convenor Graham Critchley.

"Paperlinx's balance sheet should now be of concern to every stakeholder. This is no longer a hybrid problem, but a global Paperlinx problem," said Critchley.

"Unless the board has pulled rabbits out of a hat, Paperlinx's net equity position will have continued to deteriorate in the second half of FY2013, increasing risk for all stakeholders given its fragile balance sheet."

Critchley also hinted that Paperlinx PIGS would demand changes to the board at the first webinar.

"We now intend to increase pressure on the board of Paperlinx to address an obvious problem, as hybrid holders have been ignored for far too long, and the unresolved capital structure is jeopardising the entire business."

Paperlinx posted a first-half loss of $57.3 million, but said it was on track to return to profit in 2013-14 on the back of ongoing restructuring and growing the business.