Gollin expects $20m from asset sale

Press, Volume CXV, Issue 34022, 11 December 1975, Page 22

Gollin expects $20m from asset sale

(Neio Zealand Press Association—Copyright) SYDNEY. Gollin Holdings. Ltd. is planning to realise more than sAust2om in cash during the next year through the sale of assets, and it is negotiating with its bankers for bridging finance until proceeds of the disposal become available, the directors say in the annual report.

Arrangements are also underway to reduce some of Gollin’s 'agency business in Australia and New Zealand. Although the group exi pects to make capital profits on a number of the assets sold, it has warned that the disengagement of activity will involve costs which will affect its 1975-76 results. There was a $10.2m working capital deficiency in the year to August 31, after current liabilities rose S32.lra to $100.4m, and current assets rose sl7m to $90.2m. This gap is understood to I have been narrowed since 'balance date. ' Five of -the smaller bankers to the group have rejquired reduction, or repayment of overdrafts, and f some creditors have shortened the terms of payment they are prepared to make available to the group. However, negotiations are nearing completion with these bankers and creditors, as well as with the group’s I

principal bankers and other parties, the directors say. These negotiations are expected to be successful and, together with the asset realisation programme, this should provide enough funds to meet obligations and provide adequate working capital to allow the group to continue to trade and return to profitability. But, if the negotiations are successful and the proceeds from the sale of assets are not forthcoming, the ability of the group to meet is obligations will be substantially affected, the directors warn. The asset disposal plan will reduce interest costs by about s2m 'a year. After restructuring is complete, the group will largely be built around its coal, timber, and graphics (interests in Australia; its tea and Coffee interests, and its various commodity trading activities throughout the world.