A complicated financial reconstruction dilutes existing shareholders to as little as 5 per cent of the enlarged equity and means that Stan Thomas, Bailey's largest investor, will end up with 30 per cent.
Mr Thomas is one of South Wales's most successful businessmen of recent years, having built up a food manufacturing business before selling out to Grand Metropolitan in 1988 for pounds 75m.
His reputation for market timing was enhanced in 1992 when he became Bailey's biggest investor by injecting equity funds at the bottom of the property market. The enlarged company plans to expand through portfolio acquisitions.
After the refinancing, which will raise pounds 24m by way of a placing and open offer at 33p, the company will change its name to TBI.Reuse content