recapitalisation, page-2

The heavily indebted Commander has convinced its financiers to lend it another $25 million, taking its total banking facilities to $385 million.

Commander's beleaguered management has watched as three of its biggest shareholders, including AMP and Perpetual, rushed for the exit last month in the wake of three quick profit downgrades. Since April, more than $325 million has been wiped from the company's market value, leaving its worth at just $136 million.

Commander's chief executive, Adrian Coote, yesterday attempted to emphasise that the company had the support of its bankers following the refinancing.

Mr Coote said a "number of parties" had shown an interest in closely inspecting its books, but he tried to play down speculation that a fire sale of Commander's assets was imminent. He declined to specify whether trade buyers or private equity firms had shown interest.
From The Age