5 October 2007
Waiver / Interest Step-Up / Release Date Of Full Year Results
Further to PPCS Limited's market update on 14 June 2007, in which we advised that:
"In the absence of a marked devaluation of the NZ Dollar and otherwise improved trading conditions, it is also likely
that PPCS' interest coverage ratios on both its Bank facilities and its Bonds will not be satisfied at 31 August 2007";
PPCS confirms a breach of its interest coverage ratios on its banking facilities and PPC020 and PPC030 Bonds as at 31
August 2007.
PPCS has received a waiver of that breach from its banks and consequently a waiver from the Bond Trustee on its Bonds.
As a result of the breach, interest on the PPC030 Bonds will step up by 1.25% to 11.50% from 15 September 2007 until
the interest date next following the first financial quarter of PPCS on which PPCS satisfies the interest coverage ratio
for those Bonds. PPCS’ financial quarters end 30 November, 28 February, 31 May and 31 August. The interest rate on the
PPC020 Bonds is unchanged. For the avoidance of doubt, interest payments will continue to be made on their normal due
date.
PPCS intends to release its audited results for the 12 months ended 31 August 2007 on Monday 29 October.
ENDS