Hellaby up after cutting bank debt

Investment company Hellaby Holdings shares closed up 5 per cent after it said yesterday that it had cut core bank debt by 51 per cent.

Shares finished the day at $1.60 - up 8c.

Hellaby said its bank debt at June 30 had been cut to $25 million. Total net debt including $50 million capital notes now stands at around $75 million.

Managing director John Williamson said that as a result of debt reduction since 2008, the company was now able to give shareholders and noteholders clarity with regard to its $50 million notes which mature in June next year.

He said the company would either redeem the capital notes for cash or roll them over. Another possibility was a combination of the two options.

The company did not intend to convert the capital notes to shares.

The company's investments include Hannahs, No 1 Shoes, automotive parts distributor Brake & Transmission NZ, and Elldex Packaging.

In 2008 it sold the BBQ Factory and Bombay Petfoods but it had no plans to sell any more of its investments, Williamson said.