Investors to vote on Eddie Stobart rescue bids
Investors will vote on rescue options for stricken haulier Eddie Stobart on Friday.
DBay Advisors, one of the trucker’s largest shareholders, has put forward the proposal of a £55 million loan, which will come via bonds at a high-interest rate of 18 per cent.
Should the offer not win the approval of the board, the company could be forced to enter administration since it is the only bid to date which has secured support from the firm's banks.
Eddie Stobart posted a loss of a minimum £12 million for the first half of 2019 and trading in company shares has been suspended since August.
Should the loan, offered by DBay Advisors win approval, its stake in Eddie Stobart would become a controlling share of 51 per cent, with the high-interest handing them priority claim to any money generated by the company.
A firm run by Eddie Stobart’s former head Andrew Tinkler is also tabling an offer of its own, which would see a £20 million loan injected into the troubled company before more shares in the business would be sold off to help cut debts.
Tinkler said his offer would be “advantageous to all stakeholders” and would not see a majority holder take control of the firm, urging board members to support it.
UPDATE: Eddie Stobart has avoided administration after investors voted to accept the deal offered by DBay Advisors.