6/12/2008 10:46:00 AM
Doughty Hanson set to pour £15m into 20:20 Mobile
20:20 Mobile is expected to receive a £15m cash injection from parent company Doughty Hanson this week, after pressure from the company’s debt holders.
It is a much smaller amount than originally expected, and the sum will do little to alleviate the debt hanging over the distributor.
Sources close to 20:20 Mobile said that the liquidity would help with day-to-day trading. It has also been reported in the City that a further £15m in the form of a credit facility has been made available to 20:20 Mobile to help with trading.
The backdrop to the injection of new funds is the long-awaited restructuring of the business, and the proposed debt-for-equity swap between Doughty Hanson and the debt syndicate.
The idea would be that the syndicate, which funded Doughty Hanson’s £347m acquisition of 20:20 and Dextra in August 2006 from John Caudwell, would be willing to write off some of the debt in exchange for a stake in the business.
The syndicate has been suitably convinced by 20:20’s management, led by CEO Meinie Oldersma (pictured) and finance chief Nick Smith, but is awaiting news from the private equity company about the restructure.
No-one from 20:20 Mobile was available to comment as Mobile went to press.