On Monday, financials sector company Axsesstoday Limited (ASX: AXL) announced that it has appointed Moelis Australia Advisory Pty Ltd to assist it in undertaking the Updated Strategic Review. The company told that the updated financial model has been provided to its senior syndicated lenders and securitisation warehouse facility financier and FIIG on a confidential basis.
Following meetings between Axsesstoday, the Secured Lenders and their respective advisers, the Secured Lenders have agreed to extend their forbearance in respect of the company’s current breaches under the company’s debt facilities until 5 April 2019. The Secured Lenders have granted the forbearance in order to allow them time to further consider the Company’s preliminary findings as part of the Updated Strategic Review and the terms on which the Secured Lenders may provide longer-term accommodation and financial support to the Company.
This comes after the company had already obtained waiver extensions once regarding covenant breaches from its senior lenders which extended 31 March 2019 in order to provide the company and its new management team with sufficient time to undertake the Updated Strategic Review and to establish a new business plan for the company.
Axsesstoday also intends to request further support from its FIIG Noteholders and Bondholders as it has acknowledged that the Trustee of the FIIG Subordinated Notes has called a meeting of Noteholders for 17 April 2019 to seek further instructions.
Further, the appointment of advisor Moelis Australia is to assist the company in undertaking the Updated Strategic Review. Earlier it was stated that the advisor is responsible for undertaking a review of the company’s financial model and following completion of an updated financial model, the advisor will provide further support and guidance on recapitalisation, sale and restructure options that may be available to the company.
The updated strategic review comprises of review of the company’s management accounts and financial models, its business plan thereafter and its updated capital management plan. Axsesstoday continues to trade within its tightened credit appetite and is focused on providing equipment finance to the hospitality and transport sector.
In today’s release, the company stated that it is still finalising its Half-Year Accounts and progressing with its Updated Strategic Review. It reportedly continues to work closely with its financial stakeholders to remedy the issues subsisting under its lending agreements and to consider potential recapitalisation, sale and restructure options.
Since the company is in the process of its strategic review, the company considers it appropriate to extend the voluntary suspension of its securities so that it can manage its continuous disclosure obligations and to avoid trading in its shares on an uninformed basis.
Axsesstoday stated, “the voluntary suspension is requested to allow its new management to undertake the Updated Strategic Review including to enable it to liaise with its lenders in relation to the adoption and execution of any revised business plan and the terms on which the lenders may waive any covenant breaches.”
As at 1 April 2019, AXL remains suspended on the Australian Securities Exchange. AXL last traded at $1.625.
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