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BRIEF-Towergate Finance says enters pact with lenders to restructure debt
February 2, 2015 / 3:26 PM / 3 years ago

BRIEF-Towergate Finance says enters pact with lenders to restructure debt

Feb 2 (Reuters) - Towergate Finance Plc

* Group restructuring

* Towergate announces agreement of successful restructuring and injection of capital

* Today entered into a binding agreement (the “agreement”) with its senior secured creditors to implement a financial restructuring and recapitalisation of the group

* Towergate will emerge with a substantially deleveraged capital structure, together with additional liquidity resources with which to deliver its strategic plan

* Agreement has received the unanimous approval of the restructuring committee of the board and in excess of 70% in aggregate of the group’s senior secured creditors

* Discussions between senior secured and senior unsecured creditors are ongoing to determine the terms on which the senior unsecured creditors may participate in the restructuring

* Senior secured creditors will convert all of their existing claims into £375 million of new senior secured notes, £150 million of subordinated pik notes and 100% of the ordinary shares of the new holding company for the group

* Following the transaction, net senior debt will be reduced by more than 60%.

* Agreement will result in the transfer of 100% ownership in towergate to its senior secured creditors

* Overall consolidated group income for the year 2014 declined by 4% on 2013

* The cost and income benefits from the change initiatives are expected to emerge progressively across 2015

* The process of identifying a new ceo to succeed mark hodges who resigned in october last year will now be resumed

* Says FY EBITDA £110m versus £145m a year earlier

* The company has run a wide-reaching sale process and has contacted multiple trade and financial buyers

* Received indicative bids for the group, which were significantly within the value of the outstanding senior secured creditor claims

* A strategic bidder carried out substantial due diligence and made a proposal which valued the company significantly within the senior secured debt on a net basis

* Continues in talks with fca about past advice provided by towergate financial unit on enhanced transfer values, unregulated collective investment schemes Source text for Eikon: Further company coverage:

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