Midas Capital has announced details of a restructure to deal with an “unsustainable” level of debt.
Midas owes the its lender, Bank of Scotland, £36.5m, and its funds under management and advice combined total £1.9 billion.
The firm is urging shareholders to vote in favour of the capital restructure, which will see the bank convert £24.5m into a 17.5% stake in the firm and £14m of preference shares. The remaining money will be made into a new senior debt facility of £12m.
The group’s shares will continue to trade on Aim.
In a <a href=" http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=2159208&source=RNS
” target=”_blank”>statement to the stock exchange, Colin Rutherford, the chairman, said the board had become increasingly concerned about the firm’s debt in the face of the ongoing economic downturn. Assets under management have also fallen as Midas funds experienced redemptions.
“The group’s current capital structure, and in particular its level of debt, is no longer sustainable,” he said.
The resolution will be put to the vote at a general meeting on June 3, and if passed, the new structure will come into place on June 4.
Midas opts for debt restructuring