News | Published December 06 2019

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. 

Related Stories

Authored by

Scott Challinor
Business Editor
December 06 2019

Featured Organisations

West Ashtead Primary School

West Ashtead Primary School has been serving the local community for over half a century. Currently, a team of 15 members of teaching staff helps to e... Read more

Starjumpz Children's Centre

Starjumpz provides assessments, treatment, and therapies for children and young people with neurodevelopmental conditions, including children with aut... Read more

Network Space

Network Space is a commercial property development, investment and management company based in the North West. Focused on the industrial property sect... Read more

Latest News