Pioneer Credit Limited (ASX: PNC) made an announcement late today about progress of its discussions.
The debt collecting business told investors that the banks comprising its senior financiers have indicated their approval, subject to agreeing on formal documentation, to provide a further standstill period to the one Pioneer Credit announced three weeks ago.
This new standstill period will now end on 2 December 2019 unless it's extended further again. The documentation is currently being finalised and Pioneer Credit said it would update the market as soon as it has been executed.
Pioneer Credit reminded investors that it has appointed Azure Capital to assist with proposals received to buy its assets. The company has received a number of non-binding indicative proposals, including change of control and the provision of funding. Pioneer Credit has short-listed several parties for the next stage of the process.
The company reassured shareholders that it continues to trade in the ordinary course of business, including the continued investment in its forward flow debt portfolio program from free cashflow.
Foolish takeaway
This is certainly good news for Pioneer Credit. Things looked a bit grim several weeks ago when the financiers looked as though they were going to play hardball with the company, but this extension shows they're willing to work with the company – perhaps until one of the potential deals that the company mentioned today comes to fruition.
Investors can't do anything even if they wanted to buy or sell because the company is still in suspension. But after all of this drama I don't think I could stomach being a shareholder.
