Cerberus to assume control of Australia's Axsesstoday

The company went into voluntary administration in April and subsequently received several offers relating to a sale or recapitalization. The administrators decided to sell the operating business as a going concern to Cerberus, offload the listed shell, and transfer certain assets to a creditors’ trust. They are seeking approval for a proposal that would see unsecured creditors receive a dividend of approximately A$0.34 on the dollar.

Axsesstoday is a specialist lender to small and medium-sized enterprises (SMEs). It provides financing and chattel mortgages – where movable property such as vehicles are used as security – to companies in the hospitality and transport industries purchase equipment. The company also makes general loans to SMEs. Net receivables stood at A$334 million ($226 million) as of June 2018, a threefold increase on 2016.

Rapid growth coupled with higher than anticipated arrears put pressure on the capital structure, resulting in a series of covenant breaches. The company was suspended from trading last September while directors undertook a review and sought to raise capital. By April, senior lenders concluded they were unable to continue supporting the business.

Revenue for the 2018 financial year was A$49.7 million, up from A$21.3 million in 2017, with finance costs rising from A$6.17 million to A$20.3 million over the same period. Net profit fell from A$3.65 million to A$3 million. Shortly before going into administration, Axsesstoday said it expected to post a A$13-15 million loss for the six months ended December 2018.

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• Topics
• Australasia
• Financials
• Restructuring
• Australia
• Cerberus Capital Management