French threat to Aegis
AEGIS Group, where Peter Scott stands down as chief executive today, has warned that proposed legislation in France could have a severe effect on the already troubled company, writes Jason Nisse.
The French government is considering changes in the law that would bring French media-buying practices more in line with those in the UK. Mr Scott told Aegis shareholders: 'If enacted, the draft law may have a material negative effect on the group's operations in France.'
Aegis's shareholders yesterday voted to approve a refinancing package involving a pounds 19.8m rights issue and debt restructuring. The media group has debts of pounds 60m.
The shareholders were also told that a New York court had rejected attempts by the company to have dismissed a dollars 300m ( pounds 158m) legal action, brought against it by a US sports sponsorship group. The ruling was three days before Aegis's rights-issue document was published on 7 August, but too late to be included.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies