1st Jun 2018 14:36
LONDON (Alliance News) - Child products retailer Mothercare PLC said on Friday its company voluntary arrangement proposals, including its business refinancing and UK store portfolio restructuring, have been approved by creditors.
As part of the refinancing, the placing and open offer of shares to raise GBP28.0 million will be completed in July with the intent to price it at 19 pence per share.
Also, the revised debt facilities of GBP67.5 million provided to Mothercare by an existing lender is conditional on the placing and open offer being completed.
The company has stressed it is not, and will not be, in administration as a result of the approved proposals.
"We are very grateful for the support of our many stakeholders across our creditor base in supporting today's CVA proposals. Their forbearance and support today is a crucial step forward to achieve the renewed and stable financial structure for the business that will drive an acceleration of Mothercare's transformation. These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the UK and internationally," said Interim Executive Chairman Clive Whiley.
Shares in Mothercare were up 7.1% at 33.00 pence on Friday.
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