Burns-Anderson seeks restructuring of debts

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BURNS-ANDERSON, the loss- making recruitment and financial advice group, hopes to restructure its borrowing facilities and share capital to address its worsening situation, writes Paul Durman.

The company has been forced to call a shareholders' meeting next month because the value of its net assets has fallen to less than half its pounds 4m of called-up share capital. This fall was caused by a decline in value of Burns-Anderson Recruitment, which is struggling because of the recession.

The group had a consolidated net deficit of pounds 8.6m and short- term debt of pounds 14.6m at the end of last year.

Derek Boothman, chairman, would not give details of what the restructuring was intended to achieve. Discussions with bankers are still at an early stage. Nor could he say what he planned to say to shareholders next month.