Struggling trucking firm Eddie Stobart is facing a key shareholder vote on its future today as it struggles with bank debts of £200m.
Shareholders are set to vote on whether to accept a £55m high-interest loan from former owner Dbay, which would take 51 per cent of the company in exchange.
The company has warned of am imminent cash crunch if it fails to secure additional funding.
Former Stobart Group chief executive Andrew Tinkler has been trying to drum up support for an alternative package in the form of £80m equity raise with a £20m bridging loan.
Tinkler has said shareholders are unhappy with the Dbay proposal and have been supportive of his plans.
However, the company’s banks and its board have thrown themselves behind the Dbay deal and are threatening to push the business into administration if the vote does not go their way.
The company has reportedly lined up Deloitte to act as an administrator if the vote for the Dbay proposal fails.
In a stock market statement Eddie Stobart said that if the deal is rejected, “the lenders would support the board taking steps to achieve the Dbay transaction by an alternative route which would see no return to shareholders”.
Rival trucking firm Wincanton pulled out of a potential bid for Eddie Stobart last week, blaming a lack of concrete financial information.
Eddie Stobart’s shares were suspended in August after an accounting scandal. It has still not published its interim results.