Pawnbroker to appoint restructuring officer as £35m deal fails.
Albemarle & Bond has given a finance update today in which it announced that talks with its major shareholder to raise £35 million have failed.
The pawnbroking group has been in negotiations for the past four months with EZCORP International to underwrite an equity raise of approximately £35 million and negotiating a revised banking package. However it has now said that it "has not been able to conclude these negotiations to the satisfaction of the board".
As a result of talks breaking down Albemarle & Bond has signed the agreed terms of a deferral of the September 30th covenant test until October 30th with its lending banks and said it is now focusing its efforts on "constructive discussions with the banks to explore all possible options to remedy potential covenant breaches later in the current financial year".
Albemarle & Bond added that the deferral agreement will lead to the appointment of a chief restructuring officer to the board by October 10th.
As of September 30th Albemarle & Bond’s net indebtedness was about £51 million. The terms of the deferral agreement cancel undrawn commitments under the company’s lending facility, reducing the facility from £65 million to £53.5 million.