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Funding search continues for group with $60m debt

by Nick Bendel7 minute read
The Adviser

Firstfolio has received a debt extension as it continues to pursue new sources of funding.

The financial services group announced yesterday that the Commonwealth Bank had extended the maturity date of its senior debt facility until July 7, which would give Firstfolio more time to find “immediate and longer term” funding.

According to Firstfolio’s half-yearly results, the company ended the 2013 calendar year with $60.5 million of debt after repaying $3.1 million during the preceding six months.

Firstfolio’s pursuit of new funding comes after the possible collapse of a $50.2 million deal with IZN Investments ACE Management.

Shareholders voted last November to accept a recapitalisation proposal from IZN. However, IZN failed to transfer the funds by the January 20 deadline, which prompted Firstfolio to engage Grant Samuel Corporate Finance to consider other sources of funding.

Firstfolio revealed yesterday that the group is now considering “non-binding indicative proposals from a number of parties”.

The board has not yet exercised its right to terminate the IZN deal. Firstfolio said on January 28 it was “the best option to meet the company’s funding requirements”.

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