ASX-listed Ecofibre has embarked on a debt restructuring plan after hopes of selling two US properties to strengthen its balance sheet fell through.

The prospective buyer of the North Carolina properties withdrew this week having previously requested an extension to a 45-day due diligence period.

Ecofibre’s Kentucky facility. The sale and leaseback of its two North Carolina sites has fallen through, triggering a debt restructuring plan

The two parties had signed a conditional US$10.4m (A$15.6m) sale and leaseback agreement in May.

Ecofibre was intending to use the proceeds to repay debt, including a US$10m property-backed loan it took out with NuBridge Commercial Lending in June 2022.

The company has now engaged Houston-based Chiron Financial to draw up a debt restructuring plan.

Ecofibre said the “first step” has been to renegotiate the NuBridge loan which must now be repaid on January 1 2025.

The extension will cost the company an extra US$200,000 or 5% additional interest.

“This term extension supports the continued progress across all business units to establish positive operating cashflows and reduce financial risk for Ecofibre,” the company told the ASX.

Steve has reported for a number of consumer and B2B titles over a journalism career spanning more than three decades. He is a regulator contributor to health journal, The Medical Republic, writing on...

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