11/12/2015 - 14:07

Kresta signs $10.6m loan deal

11/12/2015 - 14:07

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Window blinds manufacturer and retailer Kresta Holdings has been provided with a CNY50 million ($A10.6 million) loan by its Chinese parent company to pay off an existing facility and expand its east coast manufacturing operations.

Window blinds manufacturer and retailer Kresta Holdings has been provided with a CNY50 million ($A10.6 million) loan by its Chinese parent company to pay off an existing facility and expand its east coast manufacturing operations.

In a brief statement, Kresta said the loan from Ningbo Xiafeng was unsecured and had an attached interest rate of 5 per cent per annum, payable quarterly.

It will be due for full repayment by the end of next year unless a different time is agreed by both parties.

“The advanced funds will be used to repay an existing parent company facility of CNY16 million and also to fund expansion of our Curtain Wonderland retail footprint and east coast manufacturing operations, and working capital requirements,” Kresta said in a statement.

Kresta has kept a low profile since it announced a half-year loss of $1.98 million in August, which was largely the result of costs and inefficiencies associated with the establishment of a new manufacturing facility in Brisbane.

Kresta shares closed unchanged at 14 cents each.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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