Atlantic Sapphire will present revised accounts for the first half of 2021 in mid-January 2022, according to a statement on Friday night.
The company points out that they have received an inquiry from Finanstilsynet related to the company’s financial reporting of the credit facility at DNB and Farm Credit. Finanstilsynet writes there that they are considering requiring the company to issue revised financial accounts and reports from and including the six-month period ended 30 June 2021.
In accordance with the credit facility, the company’s EBITDA (operating profit before depreciation and amortization, editor’s note) is required to exceed certain levels. For the three-month period ended June 30, the company’s EBITDA for the second quarter was required to be not less than minus $ 7 million. As reported in the accounts for the first half of the year, EBITDA was minus 42 million dollars, of which minus 13 million dollars relates to the three-month period ended 30 June.
Thus began the process of obtaining a waiver, or so-called waiver, from the lenders in respect of such default. Prior to the announcement of the accounts on August 26, the group received the formal waiver from the lenders, Atlantic Sapphire points out in the announcement.
In the previously published accounts for the first half of the year, the credit facility was accounted for as a long-term debt in the group’s balance sheet. Finanstilsynet believes in its preliminary notice that the breach of the agreement meant that the lenders technically had, per. June 30, the right to demand repayment of outstanding amounts under the credit facility. The audit therefore believes that such amounts should have been treated as a short-term debt instead of as a long-term debt per. June 30th.
The reclassification of outstanding amounts under the credit facility in the restated accounts for the first half of 2021 will have no effect on the group, as waivers from the banks have already been received, it is pointed out.
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