Pioneer Credit recovery in trouble as bank cuts off funding

Pioneer Credit is in big trouble after the company announced it has been abandoned by one of its lenders. This means it willl breach debt covenants and default on its notes.

“The company was advised by one of its financiers after market close on August 30 2019, that it will not be extending its financing facility beyond the current expiry date of March 2020, and that it will not waive any breaches that may arise,” the company said in a statement.

The extension of the suspension beyond five consecutive ASX trading days will also see the company default on a medium term note valued at $40 million. The company asked to be suspended until the end of September.

If you owe debt to Pioneer Credit, this is good news. I have also heard internal murmurs about current work situation.