17 May 2010

Mercer Group to refinance

6:02 am on 17 May 2010

Mercer Group is considering ways to refinance its operations after revealing it breached its banking comittments last year.

The stainless steel products maker says the convenant states earnings should be no less than 2.25 times the funding costs, but it fell to 1.9 times in the six months to the end of December.

In response, Mercer borrowed $1.5 million from Gresham Finance to reduce bank debt.

South Canterbury Finance is the cornerstone shareholder.

Mercer is forecasting a return to profitability in the 2011 financial year.