Shareholders in logistics firm Eddie Stobart face a steep cut in the value of their investment as part of a proposed financing deal.
A proposed offer from former controlling shareholder Dbay Advisors would be at a huge discount to the price at which its shares were suspended in August, Sky News reported.
Citing sources, the report said Dbay’s proposal would involve an underwritten share issue that would result in it owning a majority stake in the haulier.
Eddie Stobart’s shares were suspended at 71p after an accounting scandal giving it a value of nearly £270m.
The firm has still not published its half-year results.
A bid from rival Wincanton is being hampered by the lack of clear financial information, the report said.
Former Stobart Group boss Andrew Tinkler is working on an alternative financing proposal.
Tinkler told City A.M.: “I’m ready to go, it’s really down to the advisers and the board and the banks taking this seriously as a refinancing option.”
Eddie Stobart’s lenders have turned to Alvarez & Marsal to advise on a potential restructuring, while Deloitte is working alongside bankers at Rothschild on the discussions with its lenders.
Any proposal to refinance the company would not be able to proceed without the lenders’ backing.
Dbay Advisors bought 51 per cent of Eddie Stobart from Stobart Group when Tinkler was running the combined business five years ago.
Dbay floated Eddie Stobart in 2017 at 160p a share, valuing the company at £572.7m.
Eddie Stobart and Dbay declined to comment.