Macquarie Media Group
(ASX:MMG) says its investment, American Consolidated Media LLC, will not be compliant with certain covenants under the ACM Facility at their next testing dates.
The company says preliminary management estimates of the financial performance of the investment indicate that ACM’s earnings before interest, tax, depreciation and amortization for the quarter to September 30, will be down 21 per cent compared to the same quarter last year.
Macquarie Media Group says the carrying value on its balance sheet of net assets relating to ACM as at June 30 2009 was $81.2 million.
Macquarie Media Group says discussions are ongoing with ACM’s lenders in relation to ACM’s request for the necessary amendments to the existing covenants and for an extension to the maturity date of the ACM facility.
Macquarie Media Group posted profit of $82.79 million in 2008.
