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Pioneer Credit seeks trading halt extension; likely to miss profit forecasts

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Pioneer Credit seeks trading halt extension; likely to miss profit forecasts

Pioneer Credit Ltd. asked the ASX to extend the suspension of trading in its shares and announced it was likely to miss profit forecasts.

The company said Sept. 2 that it requested the ASX that the suspension of trading remain in place until the earlier of Sept. 30 or the resolution of the discussions with its financiers and release of its financial results for the fiscal year ended June 30. The company previously asked for a trading halt until Aug. 28.

Pioneer Credit said there will be a material difference in its expected net profit due to the classifications and measurement of its financial assets at amortized cost. The likely difference could result in a breach of financial covenant under the company's senior financing facility. Further, as the company will likely be suspended for more than five consecutive trading days, this could result in a default under its senior financing facility and medium-term notes.

One of Pioneer Credit's financiers informed the company that it will not be extending its financing facility beyond the current expiry date of March 2020 and that it will not waive any breaches that may arise. The company said it was working with its financiers to reach a constructive outcome.