B.C.-based greenhouse supplier Bevo Agro Inc. reported Monday that it’s in no position yet to pay back $5 million it owes on a bond it issued to a Vancouver private equity firm in 2003.
The debenture issued to Banyan Capital Partners matured Sept. 24 and the $5 million principal is now due, Bevo Agro reported yesterday.
Bevo Agro, which propagates and supplies vegetable, flower, berry and other seedlings to wholesale greenhouse operators, field growers and nurseries, said in a release that it had planned to repay the debenture with funds to be provided by its banker.
However, Bevo Agro said, its debt service and debt:equity ratios don’t currently meet the bank’s pre-condition for an advance of $5 million, so the bank postponed the scheduled September advance.
If those ratios are satisfied by the end of the company’s second quarter, funds could be advanced in early 2008, the company said.
“While Bevo hopes to discuss a mutually acceptable solution or extension of the loan with Banyan, there is no guarantee that discussions will be successful.”
