Troubled non-bank lender Firstfolio has received yet another extension on the maturity date of its $30.3 million Commonwealth Bank senior debt facility.
CBA had given the company until 7 April to comply with its loan covenants but has extended the deadline to 7 July, according to an ASX announcement.
The company said it was considering alternative proposals from a number of parties.
“CBA’s extension of the maturity date of its senior debt facility will allow Firstfolio time to progress these alternative transaction opportunities,” company secretary Dustine Pang said.
Firstfolio reported a heavy loss of $300,000 for the six months to December, compared with a net profit of $1.8 million in the previous corresponding period.
Revenue was down 3% to $37.5 million and the value of the loan book fell by 2% to $18.5 billion.
Firstfolio has had trouble paying its $30.3 million senior debt facility with Commonwealth, and last year reported danger of loan covenant breach and so was recapitalising the business to inject new equity and reduce debt.
But Firstfolio took another blow in January, after IZN Investments Ace Management – the company which agreed to invest a minimum of $39.5m of equity capital in Firstfolio – missed the 20 January deadline and was unable to confirm when the funds would be transferred.
The company also has large outstanding debts to
Westpac – which has extended the revolving period until the end of this week.
Firstfolio’s interim CEO Mark Flack agreed to stand down in February from his position following the firm’s recapitalisation proposal issues. He was appointed to the position in July last year until completion of the company’s $50.2m recapitalisation proposal, following which he was to be appointed managing director of the company.
The board instead appointed Greg Pynt, an executive director of the company, to oversee Firtsfolio’s activities until the recapitalisation proposal proceeds or a permanent new CEO is appointed.
MORE:
Troubled mortgage company granted reprieve - for now
Mortgage brokerages recommended as good investments
Non-bank lender targeted by ASIC
