Proventec strikes life-saving deal with investors
PROVENTEC, the North West specialist provider of steam cleaning and coatings technologies, has agreed a life-saving deal with investors.
Shares in the AIM-listed Liverpool company were suspended last month as the firm struggled to find a way to pay a £600,000 interest payment on loan notes.
At the time the board admitted it was considering putting the business into administration.
Now it has now agreed a full restructuring plan with holders of the loan notes that will see them put an extra £2.5m into the business in return for converting some of the debt into equity.
The firm, which is 36%-owned by the Dutch firm InnoConcepts, said it is likely the deal will require the approval of shareholders. A circular calling a general meeting will been sent out as soon as possible, said Proventec.
“Until such time as the circular with regard to the above agreement can be published, the company will remain suspended pending clarification of its financial position which is expected shortly,” added the company in a statement.
Proventec employs around 100 people across its portfolio, of which Contico Manufacturing – which provides cleaning products and janitorial equipment – and OspreyDeepClean, a specialist in low pressure, chemical-free, steam cleaning, are the largest subsidiaries, with 79 staff.
Most recent financial figures for the six months to September 30, 2009 saw Proventec declare a loss of £1m on turnover of £23.6m. At this time the company had liabilities of more than £23m.
