Debt buyer Collection House is still trying to finalise its refinancing arrangements, a month after missing the deadline on an extended standstill agreement, and has now advised shareholders it failed to produce its June 2020 financial report by the end of November – the release date it had set.

Collection House entered into a standstill agreement with its lenders Commonwealth Bank and Westpac in April, after breaching the terms of its financing arrangements.

It missed the refinancing deadline at the end of September and missed the October 30 extension.

Previously the company has said it was “assisting a small number of counterparties with their financial and operational diligence procedures.”

Yesterday it said it is “continuing to agree definitive documentation with the preferred counterparty and existing lenders.”

Its shares remain suspended and it will not release its financial report “until definitive documentation with the preferred counterparty and senior lenders in respect of the refinancing transaction has been finalised”.

According to the company’s most recent quarterly cash flow report, it has loan facilities of A$200.8 million. It repaid $14.6 million of the senior secured facility during the quarter, in line with the requirements of the standstill agreement.

During the September quarter the company generated $21.2 million from operating activities and at the end of the quarter it had cash and cash equivalents of $8.8 million.

Constraints imposed under the standstill agreement are restricting its business activities. It said new debt ledger purchasing during the September quarter was restricted to meeting pre-existing forward flow commitments.

The company’s problems go back to a change to its business model, following criticism of its collection practices, which affected the accounting value of its assets. This in turn affected its ability to meet the terms and conditions of its loans.