2nd Nov 2015 15:24
LONDON (Alliance News) - PeerTV PLC on Monday said its subsidiary, Digitek SMT Assemblies Ltd, has not secured approval at a meeting to restructure its loan notes.
PeerTV said it had begun preliminary discussions for a debt-to-equity conversion with key loan note holders of Digitek back in early October, but had warned the talks were at "an early stage and no definitive terms have been agreed, nor can there be any certainty that such an agreement will be reached."
PeerTV said 58% of the votes cast by the secured loan note holders of Digitek were in favour of the proposed restructuring of its loan notes, but it needed a minimum of 75% for the proposal to pass.
Digitek SMT Assemblies is a subsidiary of Digitek Holdings Ltd, in which PeerTV holds a 64.1% stake. Digitek assembles electronics products and components for companies in the telecommunications industries.
"The company will now consider the options available to. A further announcement will be made in due course," said PeerTV in a statement.
If Digitek had secured approval, PeerTV's interest in Digitek would have been materially reduced.
PeerTV shares were down 10% on Monday afternoon to 0.0180 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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