KEY POINTS:
ProvencoCadmus said its bank facilities are due to expire at the end of this month.
"Clearly we have been maintaining close contact with our bankers over this time," the seller of payment systems said.
"We are currently seeking to extend the bank facilities to enable us to complete all the steps involved in the recapitalisation strategy."
Investors have been selling shares in companies that have signalled high debt levels or a need for new capital.
This includes Fisher & Paykel Appliances, Metlifecare, PGG Wrightson, and Nuplex.
"As advised at our annual general meeting the current level of debt remains a major concern, and the recapitalisation of the company ... has been a major focus for the board over the last six months," ProvencoCadmus said.
The sale of the company's Vantex business should be put to shareholders in March or April. ProvencoCadmus also said capital notes maturing shortly will be rolled over and will pay an interest rate of just 2 per cent per annum, quarterly.
Note holders can convert to ProvencoCadmus shares.
The company recommended note holders wait until they see the half-year result before deciding what to do.
- NZPA
