NATIONAL: Austin Group investors are breathing a sigh of relief, following news the embattled wholesaler has received some much needed financial backing. Administrators for Hawkswood Investments, an Opes Prime subsidiary that was issued $6 million worth of Austin Group convertible notes late last year, has reached a financial agreement with investment group Albany Capital Investors.
Under the agreement, Albany will purchase the convertible notes from the ANZ Bank, which has held the notes since Hawkswood was placed into administration in March 2008.
In another coup for Austin Group, Albany has contracted it will not redeem the notes until 2012 and agreed the notes will not accrue interest from 2009, a saving of $2.4 million.
Austin Group chairman Michael Abela admitted the move couldn't have come at a better time, with the company currently undergoing a major restructure and planned name change to Mercury Brands, effective as of July 1.
"The past several months have been very challenging for the company," he said. "We are now determined to repair the damage caused and return the business to profitability. With a strengthened financial stability, the company will now focus on building its brand portfolio and re-energising its sales focus."
Austin Group brands include Rochford, Playboy, Voodoo Dolls, Crusty Demons and Purr.