Service Stream extends suspension from ASX

Service Stream has extended its suspension from trading

Service Stream has stretched its suspension from trading to August 15, labelling the impact on full-year earnings from subsidiary Syntheo as material.

Previously the NBN contractor had requested the suspension until July 8 to undergo a review of Syntheo and revise its earnings guidance, with the company having lost a key contract to build the NBN network in the Northern Territory.

"The company has now substantially concluded the Syntheo project review and understand that a material loss wil be recognised in 2012-13 in relation to the Syntheo Joint Venture," Service Stream said.

According to The Australianthe company is using the time to cut costs, with over 100 jobs expected to be lost as the company attempts to refinance its banking facility arrangements.

In May the company revealed that it had breached its gearing ratio covenant with ANZ and Westpac.

The company's share price was trading at an all-time low of 14 cents on June 11, before the trading halt.

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