Pie Face turns to Cayman Islands investment fund

2016-02-18 Pie Face invoice deal 9mgFIN.jpg Peter Nicholson

Back-from-the-dead fast food franchise Pie Face has turned to a Cayman Islands investment fund associated with its director, veteran stockbroker Bruce Wookey, “to address the immediate cashflow problems of the company”.

Pie Face was a hot investment when the likes of James Packer’s casino rival Steve Wynn and Singaporean retail mogul Brett Blundy poured millions into the Wayne Homschek-helmed group a few years ago, but it went cold in late 2014 with directors putting it into administration.

It’s been back in business since early last year under a deal with creditors, but there still seem troubles earning a crust.

Last week creditors agreed to give it a six-month “breathing space” break from making repayments and on Sunday CFO Colin Christie asked noteholders owed $7m to approve the Caymanian caper.

It’s proposed Pie Face will get a $US500,000 line of credit, secured against invoices to its customers with interest charged at a saucy 18 per cent.

This is needed because suppliers want cash on delivery or within a week, but the company isn’t collecting from customers for up to 45 days.

There’s also to be a six-month holiday from repayments on its existing debt, which TCA kindly took over from Nicholas Moore’s Macquarie, in return for a chunky $US2m fee.

Christie asked noteholders for an “urgent response”.

Fairfax follies

With Age editor Andrew Holden defenestrated as Fairfax adopts yet another complex editorial structure — its third in four years — attention turns to under-pressure company boss Greg Hywood and other senior execs ahead of tomorrow’s financial results, the first under new chairman Nick Falloon.

Maserati fan Hywood has proved resilient in the face of persistent whispers he is to get the boot and has hunkered down for the long haul, last month splashing $1.4m for a fancy pad in Sydney power tower The Residence, where neighbours include chef Tetsuya Wakuda — who trained incoming ABC boss Michelle Guthrie’s fella Darren Farr — and NBN boss Mike Quigley.

If Hywood stays put, that’s bad news for rising star and Domain boss Antony Catalano, who’s now hard at work after accepting his guilt on drink-driving charges arising out of the same sort of “chest pains” that have ICAC stoushing with NSW prosecutor Margaret Cuneen.

Meanwhile, investors are running the ruler over the performance of long-standing company secretary and general secretary Gail Hambly, who enjoys a deal redolent of the glory days of yesteryear.

In addition to being well-paid at a million a year, she and “a small number” of Fairfax execs also share with (still) Woolies boss Grant O’Brien the joy of being in a defined benefit super scheme, which pays out fixed winnings no matter what the stockmarket’s vagaries.

But the biggest eyebrow-raiser among shareholders is the whopping 18 months notice the company has to give if it decides it no longer requires her services.

Private Packer

If eschewing scrutiny is the driving motivation behind James Packer’s planned privatisation of the $8.5 billion Crown Casino, then there’s no better place to live than next door to his great mate, Israeli Prime Minister Benjamin Netanyahu.

Punters can take a virtual walk past the residences of most world leaders, including the private Chicago abode of Barack Obama.

But, as work continues on Packer’s mansion in swish seaside enclave Caesarea, Google stalkers can’t get past the extensive pixelation that has been applied to the Hadar St precinct occupied by Netanyahu’s home.

That should suit Packer just fine when he eventually moves out of his smaller Tel Aviv apartment and into the renovated house.

There is little pixelation, however, being applied to Packer’s three children, shared with ex-wife Erica Baxter, who has been stepping out with singer Seal since mid last year (just ahead of Packer taking up with Mariah Carey).

Baxter and beau have been extensively photographed frolicking about Sydney’s beaches with their collective seven children, with the faces of Packer’s heirs plainly visible, in contrast to the previous practice of protecting their identities.

Meantime Packer’s newly minted billionaire sister Gretel, fresh from negotiations to successfully recast the division of the Packer empire, continues to maintain her private philanthropic life.

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