Major banks are demanding to be allowed to conduct due diligence on Armaguard before agreeing to support a $190 million lifeline that the Lindsay Fox-owned cash transit company claims is needed to keep it alive.
Before funding is approved, banks want to understand the company’s predicament to work out if the request for $190 million over three years is reasonable and whether they may be exposed to demands for more money.months after the regulator approved its merger with Prosegur, the other major operator. The next phase of the banks’ discussions, according to industry sources, will be developing a better understanding of how Armaguard has come under such pressure.
“Beyond the contract amendments, banks need to really understand what is going on in this business and what has changed.”Lenders don’t know what assets Armaguard holds and whether these have or could be moved to other companies in the group. This could affect the banks’ decision whether to buy out the cash delivery business.
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