Leadership

Boundary in debt talks with Anglo

30.06.2009
The Irish-based investment holding company Boundary Capital has today reported a loss of €54.4m for 2008, compared to a loss of €2.7m which it reported in 2007.

The loss was primarily due to the devaluing of the company’s investments. The downward revaluation of its investments in Arnotts, CJ Fallon and ODC accounted for €34.9m, Boundary said.

The company is also currently in discussions with Anglo Irish Bank to extend its debt facility. It said it currently does not have sufficient financial headroom available to service its debt obligations.

During the year, Boundary increased its debt facilities from Anglo Irish to €38.6m in order to finance current investments. It said the outcome of its discussions with Anglo are “uncertain and ongoing”.

While the directors are hopeful of a positive outcome to the discussions, the group said there now exists a “material uncertainty”, which may cast “significant doubt on the Group's and Company's ability to continue as a going concern”.

“If this is the case, the Group and Company may be unable to continue to realise assets and discharge liabilities in the normal course of business,” the group said.

Chairman Niall McFadden described the past year as “challenging” for the company. He said that he expected 2009 to be a “year of consolidation, with opportunities to make further investments being limited due to lack of funding”.

“We hope to finalise discussions on the debt facility with our bankers, but there remains risk and uncertainty in this regard,” McFadden said.

Boundary said it may try to reduce its debt position through a share placement or by disposing of one or more of its investments.