WESTERN Australia developer Port Bouvard (PBD) said it has received a communication from its banker advising the company that it has committed a technical breach of one of its facility agreements.
PBD executive director Stephen Court said the bank does not propose any immediate consequences, but has requested that the company agree a restructuring plan with the bank by November 29.
“PBD believes it has complied with the terms of the facility agreement (and has so advised the bank) but it sees no practical purpose in contesting the point, since the company is in any event already focussed on determining a restructuring plan within that same timeframe.
“PBD advised the market in August and again in September that its cash reserves and drawdown capacity were sufficient until November. Accordingly, it has for some time been incumbent on the company to resolve its ongoing financial structure by the end of this month,”
Court said the bank’s communication does not change that imperative, and the relationship between the company and the lender continues to be constructive.
Meanwhile he said PBD has engaged with a wide variety of parties that have presented ideas on the restructuring and discussions are progressing.
Property Review