here is the announcement GO TUART

  1. 1,217 Posts.

    HOMEX - Perth

    In the light of Tuart Resources Ltd's (Tuart) partially successful
    equity raising (details of which are referred to in the company's
    announcement dated 19 June 2002) Tuart has continued to explore
    strategies to resolve its working capital needs for the present
    financial year.

    In this regard, Tuart has secured agreement in principle with a
    syndicate of lenders based in Melbourne to provide medium term debt
    capital to fund the operation of the 2 vineyards - Southern Wine
    Corporation Ltd's, Preston Vale Vineyard, and Diamond Ridge
    Management Co Ltd's, Diamond Ridge Vineyard, for the current
    financial year. The details resolved to date are as follows:

    1. In relation to Southern Wine the syndicate of lenders:

    1.1 intend to advance next week sufficient funds to take a full
    assignment of the Commonwealth Bank of Australia's (CBA) mortgage
    over the Preston Vale land - the CBA in this regard has agreed to
    extend its facility to enable this assignment to take place:

    1.2 subject to the approval of the unitholders in the Fernvale Unit
    Trust (a meeting of which will be called by SWC as soon as possible)
    the syndicate of lenders has agreed in principle to lend an
    additional $3.8 million to SWC subject to:

    1.2.1 SWC entering into a satisfactoryarrangement with the
    Australian Tax Office (ATO) in respect of accrued tax. In this
    regard the ATO has issued a demand to SWC to pay the accrued tax and
    negotiations are currently underway to try to make a satisfactory

    1.2.2 Tuart and SWC reaching a satisfactory arrangement with the
    debenture holders who have appointed a receiver over Rivermax
    Enterprises Pty Ltd to resolve their claim.

    2. In relation to Diamond Ridge, subject to Diamond Ridge resolving
    matters with the CBA and a syndicate of lenders, it is intended to
    borrow sufficient funds to enable Diamond Ridge:

    2.1 to retire its secured debt to the CBA and to a second secured
    lender, and

    2.2 to fully implement its Deed of Company Arrangement, in
    particular, compromising with the ATO its outstanding tax

    3. The terms of the finance are currently being resolved but will be
    for a period of 3 years. Full details of the final terms will be
    announced by Tuart as soon as they are resolved.

    4. Simultaneously with these initiatives Tuart is causing its
    subsidiaries to take the following steps:

    4.1 In relation to Diamond ridge steps will be taken as soon as
    possible to terminate the prescribed interest scheme.

    4.2 In relation to Southern Wine, SWC as manager of the SWC managed
    Investment Scheme, intends to issue a call to the growers
    participating in the SWC managed Investment Scheme for additional
    funds to meet the management costs for the current financial year.
    The SWC Managed Investment Scheme provides that if growers decline
    to meet the call for managed fees then the managed investment scheme
    may be terminated.

    In the light of these initiatives, which should see the vineyards
    have sufficient working capital, Tuart is moving as quickly as
    possible to finalise full contract details with NexBanc for the sale
    of its entire 2003 harvest from the 2 vineyards - details of this
    arrangement were released to the market on 13 May 2002.

    B Hendrie

    comments please

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