Figures for the six months to 30 April 1992 revealed group borrowings of pounds 48.2m and negative net assets of pounds 29m. Trencherwood made pre-tax losses of pounds 16.4m in the period, of which pounds 12.2m were provisions for liabilities that will be settled by the rescue deal.
The refinancing involves the conversion of bank debt and money owed to creditors into preference and ordinary shares.
Midland Bank is owed 50 per cent of the bank debt, Royal Bank of Scotland 45 per cent and Schroders the balance.
Current shareholders will end up with 30 per cent of the enlarged share capital, but that will be diluted to 15.9 per cent if the preference shares are converted. John Norgate, chairman, sees his stake fall from 60 to 18 per cent.
The deal includes the provision of facilities of about pounds 30m. Richard Brooke, finance director, said these should provide the company with enough working capital to return to health.Reuse content