This story The Australian just now:
Printer Ovato cuts pay by 40pc, seeks bank aid
Australia’s largest printing company, Ovato, is seeking help from its banks amid the coronavirus crisis and will slash pay by 40 per cent for most of its staff, including all executives and board members.
Ovato, previously known as PMP Group, said ANZ and Assetsecure have agreed to waive the testing of financial covenant ratios.
It is also working to secure “similar waivers and covenant relief from noteholders” of the $40m secured subordinated notes due in November 2022.
Chief executive Kevin Slaven said the company is working to ensure its expenses match its revenue during the economic uncertainty.
“While this uncertainty continues, Ovato remains confident in its ability to maintain our service standards with plants operating in all Australian states, albeit at reduced capacity,” Mr Slaven said in a statement released late on Tuesday night.
Chairman Michael Hannan said the group is facing the “unprecedented crisis with the most experienced management team in the industry”.
“We have acted early and are adapting to the daily changes. We have managed capacity by shutting down equipment at all sites, while retaining the flexibility required to ramp up or down quickly.
“I am proud to say that we have had good co-operation from our entire workforce, which will see an effective 40 per cent pay reduction for most of our staff, including all executives and board members,” Mr Hannan said.
Had the management team been on performance related pay, the earnings reduction would be far greater than 40%
How ironic that the covid crisis may give a justification for loaning more to this Company. On a trading basis it would not have been a candidate for more funds.
Hannah is plenty rich and controls 50% of equity, let him stump up.
Just another company using Covid to hide their wrongdoings and this company has many. They justified spending $10MILLION on a machine at a time when they already couldn’t pay their debts! Poor management decisions have seen this company take a huge nosedive way before Covid. But I guess these bozos will all get a pat on the back and a big bonus.