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College sales won't pay bank debt: Intueri

NZN 30/04/2017 Jonathan Underhill

Intueri Education Group says indicative offers for its remaining New Zealand colleges will not be enough to repay all of $70.7 million in debt with the ANZ Bank.

As a result, the company would have insufficient residual assets to operate a sustainable business or make any return to shareholders if a sale eventuated, it said in a statement on Monday.

Intueri hired High St Capital Partners for advice on options for the New Zealand operations including the sale of assets after being forced to close its Australian institutions when they failed to gain renewed registrations across the Tasman. Those remaining assets are now being liquidated.

The company said it retained the support of its bank under a standstill agreement reached after it breached a lending covenant. The standstill is to allow Intueri to complete a strategic review. "Intueri's New Zealand businesses continue to be able to meet obligations currently being incurred," the company said.

In February, Intueri said it had conditionally agreed to sell the NZ School of Outdoor Studies, which trades as the NZ School of Commercial Diver Training and is the only such school in New Zealand, with settlement expected by the end of March.

However, on Monday it said the sale hasn't been finalised despite settlement being extended to the end of April and it was now exploring options with other parties to divest the college.

In the meantime, the Dive School will maintain normal operations under Intueri management.

Intueri's 2014 initial public offering at $2.35 a share allowed vendor Arowana International to net about $102m while selling its stake down to 24.9 per cent and provided $60m to pay for the acquisition of its now-defunct Quantum Education Group.

The stock last traded at 2.1 cents, valuing the company at $2.1m.

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