1st Nov 2013 11:40
LONDON (Alliance News) - Shares in PeerTV PLC dropped 34% Friday after it warned that a subsidiary is running out of cash because of the need to fulfill recent strong order wins and has asked holders of its loan notes to accept a delay in payments or to accept shares instead.
The security agent for Digitek SMT Assemblies has recommended that the loan note holders accept the delay or shares in lieu of cash, it said in a statement.
"The delay in payment has become necessary as a consequence of the recent good performance in winning new orders which has led to increased working capital requirements, putting further stress on cash resources," PeerTV said in a statement.
PeerTV provides services for video-on-demand delivery. Shares in PeerTV were trading down 34% at 2.40 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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