BDL 0.00% 13.5¢ brandrill limited

miningnews 26/03.04

  1. 1,674 Posts.
    I like the bit where the author makes the disclosure that he owns shares in BDL.

    I thought that it was only me who held dog stocks.
    Brandrill to tap market

    Michael Quinn

    Friday, March 26, 2004
    DRILL and blast contractor Brandrill is planning an equity raising designed to pave the way for a recapitalisation of the troubled company.

    The size of the equity raising hasn't been disclosed, with Brandrill saying it will be designed so as to obtain optimum debt terms and restore positive working capital.

    The equity raising is needed following Brandrill's failure to sell its loss making South African operations.

    Last year it believed it would get around $10 million for the business, but a number of deals have subsequently fallen through. Earlier this month, the 51% owned Brandrill Torrex was placed in provisional liquidation.

    A debt to the Industrial Development Corp of SA - believed to be around $11 million and related to preference shares issued by 100%-owned Brandrill South Africa (BDSA) to IDC in February 2002 - is to be replaced by 30 million shares, with IDC stipulating those shares must be worth R15 million by September 30, 2006.

    At the 1.6 cents Brandrill's shares last traded at, IDC's stake is currently worth R2.4 million.

    According to Brandrill, the deal with IDC also requires letters of intent from potential financiers willing to recapitalise the contractor. Those letters must be produced next month.

    The last two years have been absolute disasters for Brandrill, with full year losses of $31million and $54.9 million in fiscal 2003 and 2002 respectively.

    Disclosure: The reporter holds shares in Brandrill

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