Midas shares tumble 63%

THE share price of Liverpool-based based fund manager Midas Capital Partners fell 63% today, prompting it to issue a statement to the stock market.

The company said that the business is trading in line with expectations and remains cash generative but confirmed it was renegotiating finances with its bankers.

It said net debt stood at £29.8m and added that it has met all of its interest and principal payments on time.

It said: “In view of the well reported market conditions [Midas] is working closely with its bankers and expects to reach agreement shortly on a temporary waiver of its covenants until April 30, 2009 with a view to restructuring its borrowing arrangements.

“The company is also considering possible strategic options to strengthen its balance sheet and is in discussions with a number of interested parties.”

At 11am shares were down 62% to 13p.