Yowie Demands Immediate $4.6M Loan Repayment from Keybridge
Keybridge Capital has been hit with an immediate $4.6 million loan repayment demand from Yowie Group, triggered by delays in its capital raising efforts obstructed by WAM Active Limited.
- Yowie Group demands immediate repayment of $4.6 million loan
- Loan originally had a three-year term starting May 2024
- Delays in Keybridge’s capital raising cited as cause for demand
- WAM Active Limited’s legal actions blocking capital raising
- No agreement reached on loan extension or restructuring
Loan Recall Shakes Keybridge Capital
Keybridge Capital Limited (ASX: KBC) has been served with a formal demand from Yowie Group Ltd for the immediate repayment of a $4.6 million loan. The demand, issued by an independent sub-committee of Yowie, requires Keybridge to repay the full outstanding balance by 5pm on 7 February 2025, abruptly ending what was originally a three-year loan agreement signed in May 2024.
The recall stems from delays in Keybridge’s proposed capital raising, which was expected to cover a significant portion of the loan repayment. Yowie Group exercised its contractual rights under the loan agreement, citing the stalled capital raising as a material breach impacting Keybridge’s business operations.
Capital Raising Blocked by WAM Active Limited
Keybridge’s capital raising efforts have been persistently obstructed by WAM Active Limited, which has obtained injunctive relief preventing shareholders from approving the necessary capital increase. This legal blockade has created a ripple effect, undermining Keybridge’s ability to meet its financial obligations and exacerbating tensions with its lender.
WAM’s actions include an undertaking as to damages, indicating a high-stakes legal battle that could have broader implications for Keybridge’s financial flexibility and governance. The company explicitly notes the significant impact of WAM’s interference on its business prospects.
No Extension or Restructuring Agreement
Despite attempts to negotiate, Keybridge was unable to secure an extension or restructuring of the loan due to the constraints imposed by the ongoing capital raising restrictions. This deadlock leaves the company facing immediate repayment demands without the anticipated liquidity buffer from fresh capital.
Keybridge’s diversified investment portfolio, which includes stakes in life insurance, property, and funds management sectors, now faces increased pressure as it navigates this financial squeeze. The company’s substantial holdings in entities such as Yowie Group Ltd and Benjamin Hornigold Ltd may come under renewed scrutiny from investors concerned about liquidity and operational continuity.
Looking Ahead
The unfolding situation places Keybridge at a critical juncture. The company must either find alternative funding sources swiftly or risk further financial distress. Meanwhile, the legal and strategic maneuvers by WAM Active Limited suggest that the battle over capital control and shareholder influence is far from over.
Investors and market watchers will be closely monitoring any developments in the capital raising saga, potential legal outcomes, and Keybridge’s response to the loan recall. The coming weeks could prove decisive for the company’s financial health and market confidence.
Bottom Line?
Keybridge’s financial resilience will be tested as it confronts a sudden loan recall amid a capital raising blockade.
Questions in the middle?
- Will Keybridge secure alternative funding to meet the immediate loan repayment?
- How will ongoing legal disputes with WAM Active Limited evolve and impact Keybridge’s operations?
- Could this loan recall trigger broader liquidity or governance challenges within Keybridge’s investment portfolio?
