Cavalier to trim a further $9.5 mln from debt with sale of Sydney property
By Paul McBeth
Sept. 14 (BusinessDesk) - Cavalier Corp, the unprofitable carpet maker selling assets and restructuring its business, expects to lop a further $9.5 million from its outstanding debt after finding a buyer for its Sydney warehouse and office space.
The Auckland-based company reached an agreement to sell the property, with settlement expected near the end of next month, it said in a statement. The net proceeds of the sale, which it expects will be about $9.5 million after accounting for Australia's capital gains tax, will go towards repaying debt, it said.
Cavalier has changed its chief executive and chairman and rejuvenated its board in an attempt to restructure the business and return it back to black. The company is selling assets, cutting jobs and outsourcing in a bid to return to profitability. Earlier this month, it sold its Australian Ontera Modular Carpets unit, which it said would release $6.5 million to repay debt.
The company's net debt was $53.9 million as at June 30 and before the announced asset sales.
Cavalier shares last traded at 47 cents, and have dropped 23 percent this year.