Freedom Foods Group has told the ASX it has secured ongoing support from its principle lenders and majority shareholder, Arrovest. This will ensure it has access to financial facilities as it undertakes a planned recapitalisation, it said.
The 11 September announcement said the company had agreed to a Standstill Deed with its two main lenders, HSBC and National Australia Bank (NAB), which is effective until 30 November. It is subject to FFG meeting certain milestones relating to the progress of the recapitalisation plan.
A guarantee from an entity related to Arrovest means HSBC and NAB will keep certain liquidity facilities available to the group during the standstill period.
FFG interim CEO Michael Perich said they were grateful for the ongoing financial support.
“These agreements provide us with the financial support and flexibility we need to ensure the business continues to perform at its best while we pursue recapitalisation options,” Perich said.
Moelis Australia is advising FFG on its strategic options.
The company remains in voluntary suspension until 30 October.