20 Jul 2011

Pulse Utilities 'cash flow pressures eased'

1:40 pm on 20 July 2011

Listed firm Pulse Utilities says extra cash and guarantees from its would-be saviour, Buller Electricity, have eased the company's cash flow pressures for the rest of winter.

Buller Electricity advanced cash-strapped Pulse $900,000 and increased its guarantee of the company's electricity market prudential obligations from $2.8 million to $4.5 million.

Meanwhile, Pulse says it has satisfied two conditions to its proposed rescue deal with Buller, which would lead to the West Coast firm taking control of the energy supplier.

Pulse says Buller has agreed to amend the portion of notes converted into an interest free loan from 25% to 40%, which has been also agreed by convertible noteholders.

The balance owing will convert into three shares for every $1 of notes held.

Pulse Utilities has also received commitments to secure $1.5 million in new funding.