January 23, 2022

Pie Face turns to Cayman Islands investment fund

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1643482391591873f687bc09c6a4cbfdBy Ben Butler & Christine Lacy From THE AUSTRALIAN

Back-from-the-dead fast food franchise Pie Face has turned to a Cayman Islands investment fund associated with its director, veteran stockbroker Bruce Wookey, “to address the immediate cashflow problems of the company”.

Pie Face was a hot investment when the likes of James Packer’s casino rival Steve Wynn and Singaporean retail mogul Brett Blundy poured millions into the Wayne Homschek-helmed group a few years ago, but it went cold in late 2014 with directors putting it into administration.

It’s been back in business since early last year under a deal with creditors, but there still seem troubles earning a crust.

Last week creditors agreed to give it a six-month “breathing space” break from making repayments and on Sunday CFO Colin Christie asked noteholders owed $7m to approve the Caymanian caper.

It’s proposed Pie Face will get a $US500,000 line of credit, secured against invoices to its customers with interest charged at a saucy 18 per cent.

This is needed because suppliers want cash on delivery or within a week, but the company isn’t collecting from customers for up to 45 days.

There’s also to be a six-month holiday from repayments on its existing debt, which TCA kindly took over from Nicholas Moore’s Macquarie, in return for a chunky $US2m fee.

Christie asked noteholders for an “urgent response”.

IMAGE: Cartoon: Peter Nicholson

For more on this story go to: http://www.theaustralian.com.au/business/margin-call/pie-face-turns-to-cayman-islands-investment-fund/news-story/f9060ec28165494f5d452c2752f61cfb

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