You are using an older browser version. Please use a supported version for the best MSN experience.

Intueri tough sell for High St Capital

NZ Newswire logoNZ Newswire 2/03/2017 Jonathan Underhill

Intueri Education Group, whose $70.7 million of debt with ANZ Bank New Zealand is almost 60 times greater than its market value, may be a tough sell for High St Capital Partners, the firm hired to drum up interest in the private training establishment company.

Intueri shares last traded at 1.2 cents, giving the company a market capitalisation of $1.2 million.

Its 2014 initial public offering was at $2.35 apiece, valuing the company at $252.5 million.

On February 14, the company advised ANZ Bank it was in breach of lending covenants as at December 31, giving it 30 days to negotiate the continuation of the facility.

The "Going Concern" section of its annual report shows a $5.1m deferred payment due on June 30 to the former owners of Online Courses Australia Group (OCA), acquired in March 2014 as part of its failed Australian expansion.

"The group does not currently have sufficient headroom in its banking facility to repay this balance," it says in the annual report.

Since the full-year results were released last month, showing a $23.3m loss and impairments of $15m, the Australian Skills Quality Authority (ASQA) has decided to cancel the registration of Intueri's Conwal & Associates and OCA colleges from March 29. An ASQA audit last year had found the colleges didn't meet its standards.

Last month, 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. The settlement is expected by the end of March.

image beaconimage beaconimage beacon