Team Global Express, the logistics group used by construction companies, consumer electronics brands, appliance makers and their distributors, is scrambling to raise $180 million as auditors warn the business may not be able to continue as a going concern.

The company, run by former Australia Post chief executive Christine Holgate, needs the $180 million quickly and a further $100 million by early next year. Auditors of its parent, Australian Parcels, have described the group as facing “material uncertainty, that may cast significant doubt on the group’s ability to continue as a going concern”.

The raising comes as bankers and funders turn cautious on companies facing rising costs, weak retail sales and questionable market conditions.

Debt Extended, Assets Sold

Accounts for the year to 31 March show the group is under pressure to refinance debt as its core freight business faces significant headwinds from falling volumes and fierce price competition.

About $178.3 million of existing debt facilities were due to mature in April but have been extended until July next year. A further $55 million due in October 2027 has been extended to January 2028.

Majority owner Allegro, which has invested $85 million in the business, is providing additional financing to keep the group afloat. On 25 June it arranged a $16.5 million three-year secured convertible loan carrying no interest.

The company has also been selling assets. In March it booked a $50.9 million gain on the sale of Strait Link, which provides Bass Strait sea shipping and Tasmanian services. In April it listed three properties, telling investors it expects $30 million for them by March.

Holgate Warned Staff In July

According to the AFR, Holgate flagged a planned $100 million equity raising led by UBS in a letter to staff in late July. She told employees the expansion into online shopping deliveries was going well, but the domestic market for heavy freight was shrinking.

Holgate is executive chairman of Australian Parcels. Perpetual holds an 8% stake and Holgate owns just under 1%.

Team Global Express, which moves everything from food and clothing to building materials, was formerly Toll Global Express and was rebranded after its 2021 sale to private equity.

From Australia Post To Freight

Holgate became Australia Post’s first female chief executive in October 2017 and faced criticism over executive remuneration and spending, management culture and service changes during her tenure.

Her exit centred on four Cartier watches. At Senate estimates on 22 October 2020, Holgate disclosed that Australia Post had bought the watches, worth about $20,000 in total, for senior employees who worked on the Bank@Post agreement.

Holgate defended the rewards and initially argued Australia Post had not used taxpayers’ money because it operated commercially and did not receive ordinary budget funding. The distinction was politically damaging, as Australia Post is wholly Commonwealth-owned and its resources are legally treated as public resources.

Her departure began with a governance failure but grew into a broader controversy over political interference, procedural fairness and the treatment of women in public leadership.