SEN owner Craig Hutchinson receives financial lifeline after bank loan runs down to last $1.25 million
A Commonwealth Bank loan to Craig Hutchison’s SEN has run down to its last $1.25 million.
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Craig Hutchison has received a lifeline from one of his radio presenters, as his company’s Commonwealth Bank loan has run down to its last $1.25 million.
Documents reveal Hutchison has drawn down almost all of his $28.7 million loan with the bank.
The loan has only $1.252 million remaining, with refinance or repayment in full due by August 31.
The details were contained in the Sports Entertainment Group’s quarterly report to the Australian Stock Exchange this week.
Documents also revealed three white knight investors have propped up the company, paying $1.5 million for a 3.75 per cent share of his sports teams.
The teams include the Perth Wildcats, three other basketball franchises and a netball team that the Collingwood Football Club walked away from after losing millions.
SEN’s Sunday morning presenter David “The Chief” Alcaro put his money where his mouth is by pouring $1 million into Hutchison’s company.
The New York-based share trader has updated his Twitter handle to reflect his new found basketball team ownership.
“Futures Trader, Chief Horse Futures, SEN Teams, Perth Wildcats,” his profile page now says.
Alcaro was also known as a producer on the 2013 film Farewell to Hollywood.
He appears each week on SEN with Jordan Kounelis, with the timeslot rating 1.7 in Melbourne according to the latest GFK radio report.
Perth Wildcats superfan Bill Bloking, who is often seen courtside at the NBL club’s games, has also tipped in $400,000.
Bloking has been well known to the Wildcats family and had regularly travelled with the team.
The retired mining company executive was president of Australia/Asia gas division at BHP Billiton until 2007.
Beauty industry entrepreneur Jodi Millhahn, who previously worked for Elle McPherson’s WelleCo, also invested $100,000.
The Perth identity returned to WA after a decade in New York to start her company Wildhood, which makes “clean, natural and sustainable deodorants for tweens and teens”.
The investment values the teams at $40 million, which will assist with dealing with the Commonwealth Bank.
Hutchison’s company had breached its banking covenants, meaning the CBA could call the loan in at any time because its debt to value ratio was too high.
SEG company documents also state it has $5 million cash at hand.
Revenue was $42.6 million in the December quarter, with “net operating cash inflows of $2.6 million.”
Hutchison declined to comment on Friday on a detailed list of questions about the company’s finances.
But he did speak with The West Australian, saying: “We’ve been open to the possibility of a minor share holding group joining us.
“We think there is incredible value in the SEN Teams world that we are building that can continue to be reinvested in the respective clubs.
“We will have more to say about that at the end of the month.”
Hutchison said he would continue to hold a majority investment in the sporting teams.
The former Footy Show host has previously criticised media reporting of his company on his Sounding Board podcast.
stephen.drill@news.com.au
Originally published as SEN owner Craig Hutchinson receives financial lifeline after bank loan runs down to last $1.25 million
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