Proventec seeks approval for funding plan
SUSPENDED steam cleaning group Proventec hopes to resolve its funding problems next month when it meets creditors.
The Liverpool company has been grappling with loan note interest payments but struck a deal in principle in July with note holders.
It will now seek approval for the scheme on November 23. The company’s shares will remain suspended until the arrangement comes into effect in December.
Proventec admitted it was facing administration in June because it was unable to pay interest of £600,000 on £15m of unsecured loan notes. The deal struck in July involved a £2.5m cash injection and a significant conversion of debt and loan notes into shares.
The Dutch business InnoConcepts holds 36.2% of the shares in the AIM-listed firm and 75% of the loan notes. Following the deal Proventec said its term debt will be reduced to £7m and the loan note holders will have an additional 61% of the enlarged share capital of the company. A large proportion of the loan notes will be converted into equity at 57p a share.
Earlier in the month the company sold its holding in fire retardant developer Magma Firestop to its largest supplier, Holland-based AD International. It said the deal was in line with the company’s strategy of exiting its non-core investments.
