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- Pioneer Credit (PNC) has gone back on the market after being voluntarily suspended for four months
- Earlier this month, Pioneer announced it will hand over the company to The Carlyle Group for $120 million
- Carlyle has also agreed to loan the company additional interim funding of up to $28 million
- The company is expecting a statutory loss for the period to December 31 2019, due to events in the second half of the year
- Pioneer is down 28.58 per cent on the market and is trading for $1.76 per share
Pioneer Credit (PNC) has gone back on the market after being voluntarily suspended for four months.
The company has been following the Australian Securities and Investment Commission (ASIC) recommendations about how to calculate figures for its annual report.
In August, Pioneer asked for more time to repair its annual report. The company finally released the report by the end of September, However, it was not ready to go back on the market due to takeover offers.
The financial company was not welcomed by shareholders this morning as it dropped over 28 per cent on the market.
Earlier this month, Pioneer announced it will hand over the company to The Carlyle Group for $120 million.
Carlyle will purchase the debt outstanding under Pioneer’s senior secured debt facility from its senior financiers.
In addition, Carlyle has agreed to loan the company additional interim funding of up to $28 million.
This funding will be used for ongoing investment in Purchased Debt Portfolios, payment of the special dividend and working capital as required.
Pioneer says that while performance for the period to December 2019 has been within expectations, it has been operating under constraints due to a standstill agreement with the previous senior financer.
“Without access to additional funding and with requirements that limited its operational flexibility, Pioneer’s growth strategy has been on hold,” the company said.
“Pioneer has not previously guided first-half performance, however, advises that liquidations are expected to be approximately 4 per cent above the prior corresponding period at approximately $52 million,” it added.
The company is expecting a statutory loss for the period to December 31 2019, due to events in the second half of the year.
These events include dealing with the breach of financial covenants, standstill agreements and associated matters, the change of control process and the re-financing, totalling approximately $7 million.
Pioneer is down 28.58 per cent on the market and is trading for $1.76 per share at 2:39 pm AEDT.
