DGL Extends Debt Facility to March 2027, Eyes ASX Return by Q1 2026
DGL Group Limited has secured an extension of its syndicated debt facility to March 2027 and received a waiver protecting it from default amid its ASX suspension. The company anticipates its securities will be reinstated on the ASX by early 2026 following a half-year audit.
- Syndicated debt facility extended to 31 March 2027
- Waiver granted confirming ASX suspension is not an Event of Default
- Waiver valid until 16 March 2026, subject to conditions
- Anticipated ASX securities reinstatement by February or March 2026
- Half-year audit results critical to reinstatement timing
Extension of Debt Facility Secures Financial Stability
DGL Group Limited (ASX – DGL), a key player in the chemicals and hazardous waste management sector across Australia and New Zealand, has announced an important extension of its syndicated debt facility. The company has successfully negotiated an extension of this facility until 31 March 2027, providing it with continued financial flexibility amid ongoing operational challenges.
Waiver Shields Company from Default Amid ASX Suspension
Alongside the extension, DGL has obtained a waiver from its bank syndicate confirming that the current suspension of its securities on the ASX does not constitute an Event of Default under the terms of the Facility Agreement. This waiver, effective until 16 March 2026 and potentially extendable, is subject to specific obligations and terms, which the company has not detailed. This development offers a crucial buffer, allowing DGL to focus on resolving its listing status without immediate financial penalties.
Path to ASX Reinstatement Hinges on Audit Outcome
DGL anticipates that its securities will be reinstated to quotation on the ASX following the completion of its half-year audit for the period ending 31 December 2025. The ASX has indicated that reinstatement is contingent on compliance with listing rules and the absence of pervasive modifications in the audit report. The company currently expects this reinstatement to occur by the end of February or March 2026, marking a significant milestone in its recovery and market re-engagement.
Implications for Investors and Market Confidence
This announcement signals a cautious but positive step forward for DGL. The extension of the debt facility and the waiver reduce immediate financial risks, while the anticipated reinstatement could restore investor confidence and liquidity in the company’s shares. However, the outcome of the half-year audit remains a pivotal factor, and any unexpected findings could delay or complicate the reinstatement process.
Looking Ahead
As DGL navigates this critical period, market participants will be watching closely for updates on the audit results and any changes to the waiver terms. The company’s ability to meet its obligations and regain its ASX listing will be key indicators of its financial health and strategic direction moving forward.
Bottom Line?
DGL’s financial footing is steadied for now, but the half-year audit will be the true test of its market comeback.
Questions in the middle?
- What specific obligations and terms accompany the waiver granted by the bank syndicate?
- Will the half-year audit report contain any modifications that could delay ASX reinstatement?
- How will DGL’s operational performance evolve post-reinstatement to sustain investor confidence?
