IRG looks for $500,000 in capital
IRG told the NZX it needs around $500,000 of extra capital to remedy the breach of its shareholders funds covenant, but that it is trading profitably and not in breach of its interest cover ratio in the current financial year.
Its bankers advised it was in breach of its banking covenants around shareholders funds and interest cover after discussions on its company accounts for the year to March 31, 2009.
Meanwhile NZX has told the company off for not filing its annual report on time. It said if the accounts were not filed by Monday, trading in IRG's securities would be suspended.
IRG says the situation is largely due to write-downs in the last financial year, since which it had raised additional capital and sold assets. It added that it is "actively reviewing" its options for raising the capital it needs and that its bankers do not propose taking any action at this point.
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