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Bondholders to boot out Brixton board

TROUBLED property group Brixton will today face an angry backlash from bondholders who want to oust the firm&rsquo;s top executives, in an attempt to derail takeover talks with arch-rival Segro.<br /><br />It is understood that Segro is in the final stages of agreeing a much lower than expected takeover bid for Brixton, that will value its industrial property rival at significantly less than its &pound;170m market capitalisation.<br /><br />Bond holders have reacted furiously to the plans, fearing that the takeover will dramatically dilute their investments.<br /><br />It is believed one major UK bondholder will today propose at the firm&rsquo;s annual meeting the appointment of a new executive team to work on debt restructuring and a delay in asset disposals until the property market recovers.<br /><br />Brixton slumped to a loss of &pound;768.8m in 2008, compared with a profit of &pound;58.2m the previous year, as the value of its warehouse portfolio collapsed, costing former chief executive Tim Wheeler his job.<br /><br />However, the property group desperately needs to raise funds to pay down net debts of &pound;862m and Peter Dawson, the company&rsquo;s current chief executive, said last month that Brixton was looking at options including a debt restructuring, equity raising or asset disposals.<br /><br />Segro is believed to have already asked bankers to begin work on a &pound;300m rights issue &ndash; its second this year &ndash; that would enable it to pay down &pound;485m of Brixton&rsquo;s debt, which matures next year.