Proventec may buy up loan notes
PROVENTEC, the Liverpool-based provider of steam cleaning technologies, has said that it is reviewing the possiblity of buying back some of the £15m worth of unsecured loan notes following the sale of its Contico Manufacturing business.
The company, which recently delisted from AIM to trade solely on the New York Stock Exchange’s Alternext market for smaller European stocks, said that it was considering buying some of the notes back at a discount to the value they were issued at, in recognition of their current pricing.
Alternatively, it will offer loan note holders the opportunity to swap the debt held for shares in the business.
The firm said that in light of recently-published results (losses for 2011 and 2010 were £5.4m and £22.9m respectively), it will be clear both to shareholders and loan note holders “that it is now very unlikely that the company will be in a position to redeem the loan notes” when they expire in 2015.
The company’s board said it believed Proventec would need an extension of at least five years to pay the loan notes off in full.
