$25 million lifeline for Coromal manufacturer

The manufacturer of Coromal, Windsor and Winnebago caravans and motorhomes will receive $25 million in government loans to help get it through the coronavirus crisis.

In a statement to shareholders, the ASX-listed Apollo Tourism & Leisure said it had secured a two year, $15 million loan under the Federal Government's COVID-19 Export Capital Facility, administered by Export Finance Australia.

The Brisbane-based multinational company is also receiving financial assistance in the form of another two year, $10 million loan under the Queensland Government's Industry Support Package.

Apollo said the $25 million additional funding will allow the company "to continue executing its COVID-19 recovery strategy during these challenging times for tourism businesses".

Apollo builds composite caravan and motorhomes, under brand names including Windsor, Coromal and Winnebago. at its 20,000 sq.m production facility in Brisbane, as well as operating large RV rental fleets in Australia and overseas.

The company also distributes lightweight European Adria RVs, has a stake in the RV sharing platform Camplify and owns a number of caravan dealerships, including  Queensland’s Kratzmanns and the Sydney RV Group.

Apollo's Managing director and chief executive Luke Trouchet said his company was "very appreciative" of the financial assistance.

"This support will help us navigate through this period of uncertainty, give us the opportunity to create a stronger platform and continue to employ hundreds of people," he said.

The business was now confident it had sufficient liquidity and capacity to trade through the expected prolonged period of subdued tourism activity.

Apollo plans to release its results for the 2020 financial year on August 31.

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