KEY POINTS:
Geneva Finance Ltd says it is in breach of its bank facility covenants because of increased provisions and is talking to its banker about it.
The increased provisions do not cause compliance issues with trust deeds.
Geneva forecast a loss of $4.4 million in the year to March 31, 2009, instead of a $2.7 million profit envisaged in its capital reconstruction offer document.
The loss was after a $6.3 million provision for bad historic loans, and a $1.8 million loss of interest income, which was offset by $1 million of new revenue and cost savings.
Excluding provisions, a profit of $1.9 million is forecast for the year to March 31, 2009.
The company estimated it had shareholder funds of $20.8 million at September 30 but that figure was subject to confirmation by an auditor.
In April, investors voted for a capital reconstruction plan to get the company back on its feet after Geneva defaulted on debenture payments in November and then put in place a debt moratorium.
- NZPA
