KEY POINTS:
The future of Geneva Finance has become more certain after its banker, BOS International, confirmed it would continue its support of the company through a $35 million loan.
The retail finance company, which restructured itself through listing on the stock exchange in July, had been in talks with BOS since it breached its covenants on October 15.
Yesterday, Geneva said BOS had
confirmed the funding facility through to April 30, 2011.
Geneva spokesman Kruger Venter said the confirmation was a positive step in the rebuilding of the Geneva brand.
But as part of the agreement it will also have to undergo an ongoing process of review against performance milestones, the first of which will be in March next year.
Geneva Finance was the first finance company to go into a moratorium when it hit problems in November last year.
It froze withdrawals for six months as it tried to find another investor to inject equity into the company but was unable to do so and instead put together a capital restructuring plan.
Part of the $138 million in debentures owed to 4000 investors was converted into new shares.
So far the company has paid back 25 per cent of the money it owes in capital and interest. A further payment is due in March.
Geneva's shares last traded at 7c.
