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Intueri goes into voluntary administration

NZN 31/05/2017 Jonathan Underhill

Intueri Education Group has been placed into voluntary administration after a strategic review garnered an offer for its operating assets that is less than the value of its debt.

The company says the move only affects the parent company and non-operating subsidiaries and that its three private training establishments "continue to trade as normal".

BusinessDesk understands ACG Education, which is controlled by Australian buyout firm Pacific Equity Partners, has made an offer for the three New Zealand colleges.

Intueri said it has received an offer for those businesses but it is below the $70.7 million in debt with ANZ Bank, meaning the bank would be forced to take a loss.

The company operates with the approval of ANZ after breaching a lending covenant and has further calls on its funds coming due. The shares last traded at 1.1 cents, valuing the company at $1.1m, but were suspended on Thursday morning

ACG operates 35 campuses in 10 cities in New Zealand, Vietnam and Indonesia.

ACG didn't return calls on Wednesday while Intueri's interim chief executive said that the company's strategic review was still ongoing.

Shareholders who participated in Intueri's 2014 initial public offering at $2.35 a share have been all but wiped out. The company's recent statements had warned investors to be wary of trading the stock.

Intueri on Thursday said it had a confirmed bid for its three New Zealand PTEs - Intueri Education New Zealand, NSIA and the New Zealand Institute of Sport, which includes the New Zealand College of Massage.

"The offer price is below the amount of Intueri's debt," chairman Chris Kelly said in a statement. "If the sale proceeds, Intueri will have insufficient residual assets with which to operate a sustainable business, clear remaining debt or to make any return to shareholders."

The board appointed William Black and Conor McElhinney of McGrathNicol as voluntary administrators.

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