Shares in Brisbane-based waste company, Transpacific Industries Group Ltd, remain suspended, almost six weeks after the company asked for the halt while it talked to bankers about restructuring its debt.
The company said yesterday that talks with potential investors and its banking syndicate relating to a review of its capital structure were continuing, but there seems to be no breakthrough, given the lack of positive comment in the short statement to the ASX.
"The Company’s discussions on a range of options with a number of potential cornerstone investors, its banking syndicate and overseas investors continues. While the discussions continue, the Company’s shares will remain suspended from trading," the company said in the statement.
Shares in the industrial cleaning services and waste management company’s shares were suspended from trading on February 19.
It has been talking to those unnamed parties about a possible equity investment as well as negotiating with its 23-member banking syndicate about a waiver of a breach of covenant under documentation for a debt obligation, that has triggered cross-default provisions under a syndicated facility agreement. All very complicated.
The company’s CEO, Terry Peabody, had complained about the short selling of TPI’s shares.
Obviously the shorts had it right with the long suspension over bank finance arrangements that the company is now forcing shareholders to endure.
The shares closed at $1.80 before the suspension, that was just above the 52 week low of $1.72.
Shares in Melbourne-based Programmed Maintenance Services edged higher yesterday after it cut its forecast earnings for fiscal 2009 to $70-71 million.
That’s down from an estimate last November of $74 million.
The shares rose 9c to $2.31, well off recent lows.
Programmed said in an update to the ASX that it had "recognised reduced demand for services in some sectors, particularly resources".
Programmed said in the ASX statement that it had made an unspecified number of staff redundant, and amalgamated some divisional activities in response to the economic downturn.
The staff cuts would lead to redundancy costs of $3.4 million, to be expensed prior to March 31, when Programmed’s fiscal year ends.
"Programmed believes that incurring redundancy expenses and lowering the cost base of the business is a prudent measure to ensure the company goes into FY10 with a lower cost base than in FY09," the company said in a statement.
It said the forecast earnings before interest, tax, and amortisation for fiscal 2009 of $70-$761 million excluded the announced costs of its Spotless defence of $3.5 million and the redundancy costs.
"Despite significant changes to general economic conditions during the second half of our FY09 year, Programmed believes this forecast EBITA result demonstrates the resilience of the Group’s earnings arising from the diversity of its services and the significant volumes of work under long term contracts."
"Overall, whilst Programmed is currently seeing impacts of a slowing economy inside its business with some clients in some sectors such as transportation and non oil / gas resources, the Programmed sees growth in demand for its services in other sectors such as oil/gas, food retail, education and government and will also pursue further cost savings throughout FY10," the company said.
And still in the same sector, a rival of Programmed, Transfield Services has just revealed a new CEO after a troubled few months of trying to raise new capital and cut debt because of the slump in its businesses, especially in the US.
Transfield Services said yesterday it appointed a new chief executive officer and managing director, Peter Goode, a former Santos executive. He replaces Mr Peter Watson who had been with the company for 25 years and had been CEO since it listed on the ASX back in 2001.
Transfield said Mr Goode has more than 30 years international experience in the oil and gas and services industries, a statement from Transfield to the ASX said yesterday.
He has managed global businesses operating in more than 30 countries since 1998 in a wide range of senior roles in both public and private companies, most recently as Chairman of international oilfield services company, Expro Group International, and a global leader in working-at-height safety solutions, Capital Safety Group.
Mr Goode held a range of senior operational and commercial roles with Santos Ltd in South Australia.
The appointment of Australian-born Mr Goode follows an international search conducted by Heidrick and Struggles which started in November of last year. That was when Mr Watson’s departure was announced.
Mr Goode will commence with Transfield on Monday, March 30.
Transfield shares rose on the news, adding 7.5c to $1.975.
And Constellation Brands, the American alcohol giant which controls the BRL Hardy business in Australia, has cut its 2009 profit guidance and revealed plans to cut more than 400 jobs worldwide.
The company said yesterday disappointing demand in Europe and Australia during last year’s Christmas and New Year holidays has led to the lowering of earnings guidance and the planned cut of 5% of its worldwide workforce of 8,200 people.
