Pro-Pac has entered into a short-term facility with its major shareholder Bennamon and related entities for a short-term loan agreement of $13m.
The loan availability period is up until 15 February, with repayment by 31 March, although this date may be extended by the parties to 30 June.
The $13m facility is for both Australia and New Zealand, to be used to assist the company, while it continues to explore longer term funding arrangements.
Existing financiers have provided consents under their finance agreements, conditional upon approval of proposed repayments to Bennamon in certain circumstances.
Pro-Pac executive chairman John Cerini said, “We are pleased to have the ongoing support of our major shareholder, and the provision of this facility is a fundamental example of that support.
“Whilst this facility is a short-term option, we will be continuing to work with our advisors, our major shareholder, and financiers over the coming months on a number of longer-term options to ensure sufficient funding arrangements are in place to support the business.”
