GSH subsidiary defaults, company plans delisting

Good Spirits Hospitality (GSH) has provided some supplementary information regarding its recent announcement.

The company clarified that its wholly-owned subsidiary, Good Spirits Hospitality No. 1 (GSH No. 1), is the entity in technical default of the terms of a loan agreement.

GSH stated that it no longer guarantees the obligations of GSH No. 1 under the loan agreement.

This update aligns with GSH's previous disclosure that it no longer owns any material business assets after the completion of an asset sale on 1 November 2023.

As a result, GSH intends to delist from the NZX Main Board, subject to the satisfaction of certain conditions, including the payment of a proposed dividend and obtaining a binding ruling from Inland Revenue regarding its tax position.

The company is currently working on obtaining the binding ruling, but there may be a potential delay.

The payment of the proposed dividend is now expected to occur in the first quarter of 2024.

After the dividend payment and delisting, GSH plans to either liquidate or deregister from the New Zealand Companies Register, along with its wholly-owned subsidiaries, including GSH No. 1.

GSH has obtained consent from PDL, its lender, for the delisting and deregistration processes.

PDL has already received $15.7 million as part repayment of the loan and has released GSH from its guarantee of GSH No. 1's obligations.