A Paperlinx investors group has hinted it will call for changes to the board at an upcoming webinar.
Paperlinx PIGS, which represents some hybrid securities holders, will hold a webinar on 13 August before the paper merchant publishes its 2012-13 results and a second webinar on 27 August after the results have been released.
The webinars will discuss the future of Paperlinx and its hybrid securities, and will also be relevant to ordinary shareholders and other stakeholders, according to group convenor Graham Critchley.
"Paperlinx's balance sheet should now be of concern to every stakeholder. This is no longer a hybrid problem, but a global Paperlinx problem," said Critchley.
[Related: PIGS threaten legal action]
"Unless the board has pulled rabbits out of a hat, Paperlinx's net equity position will have continued to deteriorate in the second half of FY2013, increasing risk for all stakeholders given its fragile balance sheet."
Critchley also hinted that Paperlinx PIGS would demand changes to the board at the first webinar.
"We now intend to increase pressure on the board of Paperlinx to address an obvious problem, as hybrid holders have been ignored for far too long, and the unresolved capital structure is jeopardising the entire business."
Paperlinx posted a first-half loss of $57.3 million, but said it was on track to return to profit in 2013-14 on the back of ongoing restructuring and growing the business.
Update: A Paperlinx spokesperson told ProPrint: "As we indicated in our half-year results, Paperlinx continues to make solid progress with its business transformation program. We look forward to providing a full update to the market at our full-year results announcement on August 21. In the meantime, the board is fully aware of, and compliant with, its fiduciary responsibilities and responsibilities to shareholders."
[Related: Ups and downs of Paperlinx]
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These regular articles about Paperlinx PIGS and Critchley are becoming rather tedious. Paperlinx appears to be doing its best in a trying market and Critchley’s threats of legal action, demands for change are all hollow, piffling pleas that are tantamount to whinging. The real story here is that Critchley and his cronies are no different than Paperlinx – they made very poor investment decisions and are now paying the price.
Get over it. Build a bridge. Move on. Stop whinging about something you ca do nothing about.
Hi Daniel
I respect your views.
If you’d like to hear the full story, I invite you and others interested in the future of PaperlinX to our Webinar on Tuesday August 13, at 5 pm AEST.
This is conveniently 8 am London time.
The invitation is available above, it’s in the second paragraph, or go directly to https://attendee.gotowebinar.com/register/5101597965457409792
Contrary to popular belief, this is now well beyond a PaperlinX hybrid problem.
Please join us on August 13. You may be pleasantly surprised.