TZ Limited has secured an interim waiver and extension from financier Causeway Finance for its $2.75 million debt repayment, originally due 31 December 2025. The company also breached a covenant requiring it to maintain a minimum cash balance of $500,000, but has negotiated a revised repayment schedule extending to 16 March 2026.
The extension provides breathing room as TZ Limited finalises a capital raise with strategic investors. Causeway Finance’s willingness to grant the waiver signals continued lender confidence despite the covenant breach, with the company now targeting full repayment ahead of the staged schedule.
Revised repayment timeline and capital raise strategy
TZ Limited has agreed to a two-stage repayment structure with Causeway Finance. The first payment of $1 million is due 16 March 2026, with the remaining $1.75 million due 30 April 2026.
The company has stated it aims to repay the full $2.75 million by 16 March 2026, ahead of the staged schedule. This accelerated target relies on successful completion of ongoing capital raise discussions with existing shareholders and potential strategic partners.
| Milestone | Amount | Due Date |
|---|---|---|
| First repayment | $1 million | 16 March 2026 |
| Second repayment | $1.75 million | 30 April 2026 |
| Company’s stated target | $2.75 million (full) | 16 March 2026 |
Management’s confidence in achieving accelerated full repayment suggests capital raise discussions are progressing constructively. The involvement of potential strategic partners indicates the funding pathway may extend beyond debt resolution to include operational collaboration.
What is a debt covenant and why does a breach matter?
A debt covenant is a condition attached to a loan requiring the borrower to maintain certain financial metrics. In TZ Limited’s case, the $500,000 minimum cash covenant served as a protection mechanism for Causeway Finance, ensuring the company maintained sufficient liquidity throughout the loan period.
When a company breaches a covenant, the lender typically has the right to demand immediate repayment or enforce other default provisions. However, lenders often negotiate waivers when borrowers demonstrate a credible path to resolution, as seen in this case.
The waiver granted to TZ Limited indicates Causeway Finance sees value in working collaboratively rather than enforcing strict default terms. This is a standard commercial outcome when both parties are negotiating in good faith and the borrower has presented a viable plan to rectify the breach.
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Next steps and what to watch
Investors should monitor the following key dates for TZ Limited’s debt repayment:
- 16 March 2026 — First repayment deadline under the revised schedule and the company’s stated target for full repayment of $2.75 million
- 30 April 2026 — Final repayment deadline if the company does not meet its accelerated target
The outcome of the capital raise will determine whether TZ Limited can meet these obligations. March 2026 represents the critical month for the company’s near-term financial stability, with successful fundraising expected to resolve the debt overhang and potentially introduce strategic partners to support future operations.
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