Sigma Pharmaceuticals Ltd
(ASX:SIP) has cautioned that its syndicated bank facility is likely to be impacted by an expected $270 million impairment charge incurred from the sale of its pharmaceutical division.
In August the drug manufacturer agreed to sell its pharmaceuticals division to Aspen Pharmacare Holdings for $900 million.
Though the final agreement with Aspen has not yet been reached, Sigma advises an impairment charge in the range of $220 million to $270 million will affect its 2011 full year results, and, also likely to trigger the net asset covenant under its syndicated banking facility.
Earlier in September Sigma said it would vigorously defend allegations of alleged non-disclosure in regards to a capital raising conducted in September 2009.
Sigma Pharmaceuticals reported a loss of $389 million in fiscal 2010, falling from a profit of $80.1 million the year before.
