Wednesday 28 September 2016 04:28 PM
Intueri retains support of lender ANZ
By Edwin Mitson
Sept. 28 (BusinessDesk) - Intueri Education Group, the private education group whose shares collapsed on Tuesday in response to a warning about Australian government audits that threatened its viability, has told investors it retains the support of its lender.
In a statement to the NZX, Intueri said it had received a letter of support from ANZ Bank which confirmed the "bank will not act on the potential material adverse change triggered by the Australian Skills Quality Authority audit notification."
On Sept. 27, Intueri told investors that audits by the ASQA found that Online Courses Australia (OCA) and Conwal & Associates weren't compliant with its standards.
Intueri has until Oct. 21 to respond before the ASQA makes a decision, with possible outcomes ranging from a directive to correct areas of non-compliance through to the full cancellation of OCA and Conwal's registrations as registered training organisations (RTOs). OCA accounted for 35 percent of Intueri's $50.1 million of revenue in the six months ended June 30.
The Auckland-based company told investors today that ANZ remains supportive of it, its planned restructuring and its response to the ASQA audit.
"The bank will continue to work constructively with Intueri to review the existing funding arrangements and restructure if required," it said.
Intueri has agreed with ANZ to appoint an independent party to help the company review its financial forecasts and future funding needs. If needed, revised terms are to be negotiated and agreed. The company also said it anticipates being fully compliant with lending covenants at the next reporting date, Sept. 30.
The shares slumped 80 percent to 6 cents yesterday, having dropped as much as 87 percent. In today's trading, the stock rose 1.7 cents, or 28 percent, to 7.7 cents. They've fallen 92 percent since the start of the year.