tat to write off debts
Habitat’s owners are set to write off 60 per cent of the furniture retailers debts.
New owner Hilco, which bought the company for a nominal sum in return for taking on the businesses debts, plans to convert £53m of Habitat's £87m debt into equity. The sale involved former owner Ikano providing £17m to help support the firm.
FSA sanctions Photo-Me
The Financial Services Authority is seeking sanctions against photo-booth operator Photo-Me for breaking the rules on the timely communication of inside information. The alleged breach relates to the timing of a trading announcement in which the company warned its pre-tax profit would be less than expected. Three directors had sold £750,000 of shares prior to the announcement. Photo-Me denies any wrongdoing.
CBI chief warns on acquisitions
Richard Lambert, director-general of the CBI, has warned businesses not to make value-destroying acquisitions as Britain emerges from recession. A fragile recovery would mean companies could start considering opportunities for growing their businesses. But Lambert warned they would face “big head winds” and urged them to exercise caution.
Gala proposes debt restructure
Lenders working out details to restructure Gala Coral’s £2.5bn debts may sell their debt claims on the market rather than see them share the company.
Park Square and ICG, the two funds that own 45 per cent of the mezzanine debt that would be restructured, have written to other holders suggesting the move. The amount of debt up for sale is around £180m, with ICG owning £110m and Park Square and its co-investors £70m.