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After the CEO at one of Australia’s largest staffing firms, Rubicor (ASX:RUB), announced her departure last week, the company today said that capital restructure plans are progressing.
In a message to shareholders, the firm said it had developed discussions with Australia and New Zealand Banking Group Limited (ANZ) to restructure the debt of the company and an associated recapitalisation.
The recruiter has reached an exclusive agreement with the bank for a framework to pursue this restructure, which should be completed by March 2013.
“Whilst the framework has been agreed, there is no certainty as to the form and terms of any definitive transaction and there is no certainty that any such transaction will complete. Negotiations are progressing with regard to the provision of debt by a new financier but there will be a number of conditions to be satisfied, including completion of due diligence,” the company said.
The amount of the new debt and the amount and terms of any capital raising is still uncertain. “This means that there is significant uncertainty about the future capital structure of Rubicor after the implementation of any proposal,” the firm said.
According to Staffing Industry Analysts, Rubicor is ranked among the top 20 staffing firms in Australia. In the financial year to June 2012, the firm made a statutory loss of AUD61.1 million, following an impairment charge of AUD53.4 million and a deferred tax asset adjustment of AUD4.2 million.