COSENTINO WINES SLIDES INTO FURTHER DEBT
Luxury wine producer Cosentino Signature Wines has reached the limit of its current debt facilities after achieving lower than anticipated sales and further delays to debt refinancing talks.
According to Cosentino, the company has experienced slow sales since September 26 due to high levels of distributor inventory (which are currently on the road to being cleared.) As a result, the group’s revenue is expected to be limited to around $8 million for 2006.
Current debt has now risen to $22.5m, the limit of the company's existing available facilities, and is expected to rise by around a further $1 million over the next two months. Cosentino is currently in talks to extend its loan arrangements.
Non-executive directors Michael Forman and Larry Soldinger, who today stepped down as chairman, have agreed to give a $1 million subordinated loan to help the firm conclude a refinancing deal. Keith Smith will become chairman in addition to his current duties as CEO until a new chairman is found.
According to Cosentino, the company has experienced slow sales since September 26 due to high levels of distributor inventory (which are currently on the road to being cleared.) As a result, the group’s revenue is expected to be limited to around $8 million for 2006.
Current debt has now risen to $22.5m, the limit of the company's existing available facilities, and is expected to rise by around a further $1 million over the next two months. Cosentino is currently in talks to extend its loan arrangements.
Non-executive directors Michael Forman and Larry Soldinger, who today stepped down as chairman, have agreed to give a $1 million subordinated loan to help the firm conclude a refinancing deal. Keith Smith will become chairman in addition to his current duties as CEO until a new chairman is found.
posted at 1:51 PM
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