Recycling company CMA Corporation Ltd
(ASX:CMV) has increased its bank debts to about $166 million.
CMA released its balance sheet to the market last night, revealing its total bank debt has increased by almost $2 million to $162.8 million since June 30.
To add to its problems, the Commonwealth Bank is demanding an early repayment on a $7.4 million debt, but the recycler says it is in no hurry to pay back the loan.
CMA is instead offering not to draw down any more of the total $11 million line of credit for equipment financing if the bank holds off on its demand.
Since late 2008, the company has raised over $80 million from share issues, including handing almost half the company to German recycler Scholz Invest. Most of the cash was used as working capital.
Last week, ANZ agreed to give CMA another $16 million - $12 million for buying stock and $4 million as an overdraft, despite the company already owing $110 million.
Managing Director Doug Rowe says the company is reviewing its equity and debt structure and will update shareholders on the outcome in the coming months.
CMA Corporation posted a loss of $72.69 million for the 2009 financial year.
