suspension, page-90

Hastie Group hopeful of extension

AS lenders to Hastie Group appoint their own investigating accountants to comb over the company's books, there is hope the banks may grant an extension to a standstill agreement over $280m in gross debt by the end of this week.

The company is hopeful its shares may return to trading by the middle of next week at the latest, after almost two months of suspension.

Hastie shareholders won't be holding their breath though, as the company has been close to resolving its issues more than once before. It has been forced to all but can a potential capital raising of about $100m because of lack of investor support.

Hastie, which last traded at 92.5c, had initially tried to launch a raising at 50c but was forced to lower it to 30c and then 26c a share but even that failed to attract investors to an expanded placement and entitlement issue.

The focus has shifted to trying to find a cornerstone investor. Private equity is the most likely contender, with Hastie drawing some comfort from the fact its building services rival Norfolk Group has Maui Capital as a substantial shareholder.