By PAM GRAHAM
Don Bourke, a former executive of Kerry Packer's Consolidated Press and Brierley Investments, has taken on the job of sorting out RMG, the debt-collector part-owned by Eric Watson.
Australian-based Bourke is to be executive chairman and is bringing in associate Neil Giordano as manager of corporate development. Bourke replaces
managing director Ron Logan, who is leaving to pursue a career opportunity overseas.
The company has also bolstered its finances by issuing $6 million of notes, paying 13.5 per cent interest. The notes are convertible into equity in two years.
RMG has disappointed investors and was in the news when high-profile liquidator Michael Stiassny stood down as chairman in June, six days after the group issued a profit warning.
The group had negative equity of about $3 million in its last accounts and reported a $9.3 million loss in the year to June 30. But it made an operating profit of $430,000, which was a turnaround from a loss last year.
It will sell the notes in two parts, the first raising $2 million. The sale is underwritten by Watson's Cullen Investments and Australian brokerage Baillieu. The shares rose to 2.8c from 1.8c.
Bourke is promising to come up with a detailed plan in 45 days to improve the processing of bad debts and look at costs, particularly in Australia.
He said the New Zealand business was performing better than its Australian counterpart and the company was hopeful of picking up a major contract in New Zealand.
