24 Apr 2009

Nuplex share trading temporarily halted

3:12 pm on 24 April 2009

Trading in the shares of resins maker Nuplex Industries has been temporarily stopped at the company's own request.

Nuplex has been involved in an issue of new shares to raise capital to shore up its balance sheet and meet lenders' conditions over its debt levels.

Nuplex's shares last traded on Thursday at 33 cents.

The company was forced to look for ways to raise funds to reduce its debt levels, after a fall in demand and the New Zealand dollar put it in breach of its banking convenants last year.

It failed to gain the support of institutions in its first offer. Shares then halved when it announced its another option, a fully underwritten rights issue.

The company had been seeking almost $133 million, but raised only $127.4 million.

Underwriters First NZ Capital were being called on to take up the shares not taken up by investors, as the offer closed under-subscribed.

However, the company says its debt will now be restored to more comfortable levels.