Shares in Commander Communications rose almost 20% during intraday trading on Wednesday after the company said it agreed to a new debt repayment deal with its bankers.
The telecommunications services provider said its banking syndicate has agreed to re-schedule $115 million October 2008 facility repayment to October 2009, as well extending the $7 million of the $10 million repayment due at the end of February also to October 2009.
In a 19 page media release to the stock market, which included presentation slides, Commander outlined its ‘turnaround' plan which aims to restructure the business to focus on delivering shareholder value going forward.
"The strategic review confirmed my view that the core value drivers in Commander's businesses are sound," managing director Amanda Lacaze said.
"However, some areas of the business are underperforming or are simply unprofitable. By taking decisive action today, I am confident we can maximise value for both customers and shareholders," she added.
This might not appease some investors whose CDR shares have lost more than two thirds in value since Commander declared a loss in October for the 06/07 financial year.
Sydney-based Commander announced a loss of $5.3 million last financial year, after it turned a profit of $26 million in 2006.
"Following the restructure, Commander will quickly emerge as a more focused provider of services to selected attractive market segments where Commander either has or can build competitive advantage," said Commander.
The share price rose during intraday trading but is still trading close to all time lows.
Shares in CDR have lost significant ground over the last 12 months, dropping as much as 93% from a height of over $2.13 to a low of just 15 cents.
CDR finished half a cent down at 17.5 cents, whilst more than 4.5 million shares had changed hands.
