Brierty goes back to bank for funding
Contractor Brierty is negotiating additional bank funding as it struggles to stay afloat in the wake of last year’s losses from a disastrous road project.
Brierty has been relying on the support of its bank since suffering a $22 million loss on the North West Coastal Highway upgrade.
In the course of trying to manage cash payments, the company is understood to have been telling some suppliers it is seeking $10 million in funding to keep operating.
Cash-negative Brierty was in breach of bank debt financial covenants at December 31, and had $3.4 million available under a $35 million bank guarantee facility.
“We have been working closely with our bank and creditors over the past year as Brierty successfully delivers on its turnaround strategy,” chairman Dalton Gooding said.
“As part of ongoing discussions with our bank, Brierty is currently in the process of agreeing and finalising an additional line of credit that will better position the company.”
Brierty this month indicated a focus on mining, appointing former Mineral Resources and Thiess executive Jarrod Seymour as chief operating officer.