11th Mar 2019 08:09
LONDON (Alliance News) - Struggling department store chain Debenhams PLC on Monday said it is in advanced negotiations for approximately GBP150 million of additional facilities.
The discussions are with its current lenders. GBP40 million of the GBP150 million is to be used in order to refinance its bridge facility. The company secured this GBP40 million bridge facility back in mid-February.
On Sunday, the Financial Times reported that "a person close to Debenhams" believed the chain - which had been targeting a GBP150 million figure in order to restore its credit insurance - may seek a larger sum in order to resist takeover by Sports Direct International PLC.
According to this source, Debenhams's creditors and management were looking to make the refinancing "as watertight as possible" to prevent this, including a possible targeting of a higher figure.
https://www.ft.com/content/a3cf4966-4331-11e9-b168-96a37d002cd3
On Thursday last week, Sports Direct requisitioned a general meeting of Debenhams in order to appoint Sports Direct Chief Executive Mike Ashley and to remove all of the current members of the board. Ashley holds a 29% stake in Debenhams.
If appointed, Sports Direct said Ashley would step down from his current roles as a director & CEO of Sports Direct.
On Friday, Debenhams responded by saying it was "disappointed" by Sports Direct's decision and that funding discussions were "well advanced".
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