ClearDebt considers £3m share placing

DEBT management company ClearDebt is considering a £3m share placing to pay back a bridging loan.

The Manchester-based company has taken the £500,000 loan to cover its next payment to the administrators for the assets of a collapsed rival Relax Group.

Cleardebt agreed to pay £2.7m for 6,500 IVAs, protected trust deeds and debt management plans and has already paid £550,000, with a further payment of £1m now due.

It said it intends to repay the £500,000 bridging loan within two months by issuing convertible loan notes or a share placing, with the expectation of raising up to £3m.

The £2.7m was to be paid in cash from the company’s own resources and existing facilities. 

However, it said it felt existing resources would be best used as working capital, so although half the money for the next payment will come from existing resources, the rest will be paid for with the bridging loan from Synergy Capital Limited.

It added that the balance of £1.15m due to the administrator of Relax will be met from the proceeds of the share placing or convertible loan note.
 
David Mond, chief executive, said “We are delighted to have Synergy on board in this exciting time for the Company. Having an entrepreneurial investor alongside us who thoroughly understands the market in which we operate will be a great asset to the company.”