KEY POINTS:
Nuplex expects to reach an agreement with its bankers by next Thursday but won't be drawn on whether it has an alternative plan if it fails to renegotiate its banking covenant.
Shares in the resin maker plunged 35c yesterday to close at $1.50 after it revealed it was in talks with its banks about loosening a senior debt cover ratio (SDCR) in order to meet the terms of its bank loans as of December 31.
The admission came in response to a share price inquiry from the NZX after Nuplex fell 61c, or 25 per cent, between Monday and Wednesday. The share price is down from a year high of $6.50.
Company secretary Graeme Storey told the NZX Nuplex was not aware of any reason why its share price had fallen so much but said it could be linked to debt-troubled Fisher & Paykel Appliances.
F&P has said its debt will hit $570 million by the end of March. It is seeking a cornerstone investor as well as planning a capital raising to help with its debt levels. It has also given a profit warning.
But Storey said the difference between the two firms was that Nuplex' earnings position had not changed since it gave an updated forecast on February 2.
He expected an agreement in time for next Thursday's interim result - and repeated the statement when asked if the company had a plan B.
But analysts say selling off assets or a capital raising are the next likely steps.
