Intueri Education's failed sale of its dive training school has left its future in doubt, with sales of its other schools believed to not be enough to cover its debts.
Photo: 123rf
The company said its dive school was back on the market after the planned sale fell through.
It also said the possible prices it would get for its other New Zealand schools would not be enough to cover its debts.
"Indicative bids are below level of bank debt, which would result in insufficient residual assets to operate a sustainable business or make any return to shareholders," it said in a statement to the market.
The company has been in a downward spiral, after last year's audit by the Australian educational regulator led to the closure of its schools there, while the Australian funder declined to pay several million dollars in back payments.
It said it still had the support of its banker, ANZ Bank, with a stand-still agreement in place since the company began its strategic review in February.
The Australian operations have been closed down but Intueri it said its New Zealand operations were trading profitably.
However, the statement warned investors to seek advice before trading in its shares.
"The borrower of Intueri's bank debt is the parent company of the group and, if sold, the New Zealand businesses would be released from their guarantees of the parent company debt," it said.
"Intueri is working through the implications of the above matters as the strategic review progresses. Intueri again recommends that persons considering trading in Intueri shares ensure that they understand the implications of this announcement and seek professional advice prior to doing so."
The value of the shares slumped by nearly a quarter to 1.6 cents each after the announcement.
The company floated on the NZX three years ago at $2.63.
