Becton shares placed in trading halt
The announcement was followed by the damaging resignation of the director Andrew Kerr, who is the managing director of Telopea Capital Partners, a major shareholder.
It is 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 the investors Mariner Corp, Titanium Property Investment and Telopea.
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.
The two companies bought $242 million worth of corporate and project debt at a discount from Bank of Scotland early last month, 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 loss after tax is between $10 million and $12 million.
Frequently Asked Questions about this Article…
Becton Property Group placed its shares in a trading halt as the company is struggling to meet debt obligations to US investment bank Goldman Sachs and the fund Fortress Investment Group, prompting the halt while the situation is addressed.
The article names Goldman Sachs and Fortress Investment Group as the key lenders involved. Those two firms recently bought about $242 million of corporate and project debt at a discount from the Bank of Scotland.
Goldman Sachs and Fortress bought $242 million of Becton-related corporate and project debt at a discount from the Bank of Scotland, an action that helped trigger a trading halt for Becton and intensified scrutiny of the company’s finances.
Yes. The article explains that unresolved breaches of Becton’s debt agreement could allow Goldman Sachs or Fortress to call in the loans, which could push the 36‑year‑old company into receivership.
Following the trading halt announcement, director Andrew Kerr resigned. Kerr is the managing director of Telopea Capital Partners, which is described as a major shareholder in Becton.
The article says investors Mariner Corp, Titanium Property Investment and Telopea Capital Partners have been demanding greater control of Becton as the company faces financial pressure.
Becton announced it expected to post a net operating loss of between $2 million and $3 million for the half‑year, and a statutory loss after tax of between $10 million and $12 million.
Investors should monitor official announcements from Becton about the trading halt and any outcomes from the reported discussions with Goldman Sachs and Fortress (which the company was expected to be locked in over the weekend), plus any updates on breaches of the debt agreement that could lead to loans being called or receivership.
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