LONDON (Alliance News) - Better Capital PCC Ltd on Thursday said its 2012 fund has agreed to invest GBP11.0 million in investee company CAV Aerospace, as the aircraft components firm takes steps to free up working capital.
Better Capital said it has been informed that CAV Aerospace has taken steps to release a significant amount of working capital which had been tied up and will be making operational changes to boost its performance.
In order to back this, Better Capital's 2012 fund has agreed to inject another GBP11.0 million into the business through a secured shareholder agreement. The investment will be used by CAV Aerospace to repay its lender, removing the majority of its external debt and allowing it to invest in expanding the business.
Better Capital said it has invested a total of GBP59 million into CAV Aerospace. It didn't state its percentage holding in the company.
Better Capital shares were untraded on Wednesday, having last traded at 76.50 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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