Becton debt woes force bank talks
The announcement was followed by the damaging resignation of director Andrew Kerr, who is the managing director of significant shareholder Telopea Capital Partners.
It's the latest in a series of setbacks for the residential developer and retirement village operator, which has been fighting off demands for greater control from major investors Mariner Corporation, Titanium Property Investment and Telopea.
"A trading halt is being sought in relation to discussions with Becton's corporate debt provider relating to waivers and consents under the corporate debit facility," Becton announced on Friday.
Becton is expected to be locked in discussions with Goldman Sachs and Fortress over the weekend. Unresolved breaches of the debt agreement could allow them to call in the loans, pushing the 36-year-old company into receivership.
Goldman Sachs and Fortress bought $242 million worth of corporate and project debt at a discount from Bank of Scotland in early January, sparking a trading halt for Becton.
Last week, Becton announced that it expected to post a net operating loss of between $2 million and $3 million for the half year.
The forecast for the statutory net loss after tax is $10 million to $12 million.
Before the latest development, shareholders were set to meet next month to weigh in on moves by Mariner, Telopea and Titanium to gain more control over the company. They are expected to face tough opposition from the board and its creditors.
Becton chief executive Matthew Chun did not respond to requests for a comment.
Frequently Asked Questions about this Article…
Becton sought a trading halt while it held discussions with its corporate debt providers about waivers and consents under its corporate debt facility. The company is struggling to meet debt obligations to lenders, prompting the pause in trading.
Becton is having trouble meeting its debt obligations to US investment bank Goldman Sachs and Fortress Investment Group. The company faces alleged breaches of its debt agreement that could allow those lenders to call in loans.
Goldman Sachs and Fortress Investment Group bought $242 million of Becton’s corporate and project debt at a discount from the Bank of Scotland in early January.
Yes. The article says unresolved breaches of the debt agreement could allow Goldman Sachs and Fortress to call in the loans, which could push the 36‑year‑old company into receivership.
Becton forecasted a half‑year net operating loss of between $2 million and $3 million, and a statutory net loss after tax of between $10 million and $12 million.
Yes. Director Andrew Kerr, who is the managing director of significant shareholder Telopea Capital Partners, resigned — a move described in the article as damaging for the company.
Major investors Mariner Corporation, Titanium Property Investment and Telopea Capital Partners have been seeking greater control of the company. Shareholders were due to meet next month to consider those moves, with the board and creditors expected to oppose them.
Everyday investors should watch Becton’s official announcements about the trading halt, updates on discussions with Goldman Sachs and Fortress, any notices about the upcoming shareholder meeting, and further financial updates. The article also notes Becton’s chief executive Matthew Chun did not respond to requests for comment at the time of reporting.
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