Australia's Earlypay drops after client appoints voluntary administrator

Earlypay

07/12/2022 01:32

** Shares of Earlypay Ltd  EPY.AX  drop as much as 12.2% to
A$0.360 - set to mark worst day since Feb 18, 2021 if losses
hold
    ** Small and medium business financier says material client
RevRoof Pty Ltd and related entity Painted Steel Technologies
Pty Ltd appointed PKF Melbourne as voluntary administrator
    ** RevRoof and Painted Steel Technologies together referred
to as RevRoof 
    ** Earlypay is RevRoof's major secured creditor, with an
outstanding exposure of about A$29 mln ($19.40 mln)
    ** Earlypay says RevRoof is its largest single borrower
exposure
    ** Co expects RevRoof outstanding exposure to be repaid in
full; keeps FY23 earnings outlook unchanged
    ** Co intends to support RevRoof and PKF through voluntary
administration and any potential deed of company arrangement
    ** Stock hits its lowest since Nov 28
    ** More than 416,200 shares change hands, vs the 30-day
average volume of 300,167 shares
    ** Stock down 5.8% this year, as of last close
($1 = 1.4945 Australian dollars)
 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))