Australasian premium beverage company Charlie's Group Ltd. today said that after reducing its debt and negotiating the removal of a guarantee from the company's largest shareholder, it does not require raising new capital.

Charlie's debt outstanding, at the end of the financial year, June 30, 2009, to ANZ National Bank amounted to $7.1m. The debt has since been reduced to $4.3m. It will reduce to $3.8m on February 28.

The company intends to pay the $0.5m principal repayment early, though being entirely unrelated to the part of the arrangement, at the end of this month rather than the due date of 31 March 2010, in a move to further reduce debt and benefit from interest cost savings.

Negotiations with Collins Asset Management were carried out by the company for the release of the $5.3m guarantee given to the bank by the company's largest shareholder, to support debt facilities.

Chairman Ted van Arkel thanked Collins for “its support and said ANZ National Bank had shown confidence in the company in releasing the guarantee”.

ANZ National Bank will now measure the company against standard financial covenants.