Street Talk understands when Freedom hands down its fiscal 2020 accounts on Monday, there’ll be plenty of talk about the company’s going concern but no details for anxious investors about the upcoming recap raising.
As a result, the company is expected to extend its trading suspension until mid-December while it works with its advisers Moelis Australia and Arnold Bloch Leibler to finalise terms on its proposed company-saving deal.
Obviously no binding recap could’ve been agreed until there were a firm set of 2020 financial year numbers and those tortured numbers, months in the making, have only just been cleared by the company and its auditor.
Now the accounts are finalised, sources said the recap was on track to be signed in the next week or so. Distressed debt giant Oaktree Capital Management shapes as the most likely fund to tip money into Freedom, however nothing had been formally agreed and these sorts of deals can take late twists.
Freedom Foods shares last traded in June. The group has since uncovered large amounts of obsolete and out-of-date stock in its warehouses, and lost its managing director and appointed a new chief financial officer.
