Packer steps up for LLA

Embattled ski resort and aquarium business Living and Leisure Australia has unveiled a bridging finance deal it hopes will keep it afloat long enough to implement its recapitalisation plan.

LLA last month unveiled a $90 million plus rights issue backed by James Packer's private equity group Arctic Capital as it battles to free itself from the problems of its parent Octaviar, formerly known as MFS.

In an announcement to the Australian Securities Exchange yesterday, LLA said that Arctic was aiming to complete its due diligence by this Friday and it was expected that documents for the rights offer would be lodged with the corporate regulator by June 13.

LLA said it was in continued discussions with its major financier, the National Australia Bank, which is owed $40 million and has said before it also expects to be fully paid out by June 13.

Arctic has also now signalled it could cover a funding shortfall if the bank claimed its funds before the proceeds flowed from the rights issue.

LLA, which is being advised by Pitt Partners' Charbel Nader, also said if Octaviar was placed in administration it could complicate Arctic's plans to become responsible entity.