Cosentino back from suspension with big loss
Dec 24, 2009
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Cosentino Wines fell sharply Thursday as its shares returned from suspension after the US wine specialist published its results for the six months to 30 June which revealed a big loss.
The group reported the $2.8m loss versus a deficit of just $215,000 a year ago on revenue up to $2.74m from $2.25m in 2008.
It said the wine market was hit particularly hard at the end of 2008 by the economic downturn and the resulting challenges continued throughout 2009, especially in the luxury and ultrapremium wine sectors.
'Although the company is in default on its senior and subordinated notes payable and is currently operating under a forbearance agreement, the company currently has two signed term sheets, from two separate lenders, for the refinancing of our entire current senior and subordinated debt along with the funding of the necessary working capital required to adequately run our business,' it said today.
'Both term sheets are still subject to additional due diligence by the potential lenders.'
Cosentino said its operations are now stable and it has begun to recover lost ground along with the rest of the wine industry.
A cut in operating costs of nearly $4m annually has more than compensated for the lost revenue and lower pricing that the company and the industry are now enduring, it added.
'We look forward to be in a position to make additional favourable announcements in the future.'
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