Geon gets extra $ headroom – denies change to equity

New financial structure for trans-Tasman sheetfed printer gives relief from debt obligations until 2015.

Details of financial arrangements between GEON’s private equity owners, Gresham and its banker, Bank of Scotland International are confidential and will remain so, according to Ashley Fenton, chief financial officer (pictured). Commenting on a report in the Financial Review, he denied there was a change to the company’s ownership, or a debt for equity swap.

He refused to supply any details other than to say the company had been granted “partial release of some of our obligations.”

In the press release Graham Morgan, CEO, just back from a trip to Dscoop in Orlando, confirmed the financial restructure saying it significantly improved Geon’s balance sheet position. It means a significant reduction in Geon’s debt obligations and the extension of its financial facilities to 2015.

“With the stability our new financial structure provides, we are very well placed to capitalise on the growth opportunities which are now in front of us. The business is now into its third consecutive quarter of year-on-year growth and is starting to see more sustained improvement in performance. Our goal now is to continue to focus on servicing our clients and to deliver a strong return for our shareholders," he said.

Geon is the largest sheetfed printer in the region formed from a PE-backed acquisition spree. It has struggled under a burden of debt following a radically altered business plan. The new arrangements allow management to get on with running the network of production sites in Australia and NZ without having to be concerned about funding.