ASX-listed Ecofibre has launched a debt restructuring process after a planned sale of two US properties, intended to shore up its balance sheet, fell apart.
The prospective buyer pulled out of the deal this week, having previously sought an extension to a 45-day due diligence period on the North Carolina properties.
The two parties had signed a conditional US$10.4m (A$15.6m) sale and leaseback agreement in May.
Ecofibre had planned to apply the sale proceeds toward repaying its debts, among them a US$10m property-backed loan taken out with NuBridge Commercial Lending in June 2022.
The company has since brought in Houston-based Chiron Financial to develop a debt restructuring plan.
Ecofibre described the renegotiation of the NuBridge loan as the "first step" in that process, with the loan's repayment deadline now extended to January 1, 2025.
The extension comes at a cost of US$200,000, equivalent to 5% additional interest.
"This term extension supports the continued progress across all business units to establish positive operating cashflows and reduce financial risk for Ecofibre," the company told the ASX.
