LONDON (Alliance News) - Clear Leisure PLC saw its shares rise Tuesday after it got a GBP10 million two-year credit line from GEM Global Yield Fund Ltd, a facility that provides it with funds for working capital, fire power for potential acquisitions, and which may also be used to support debt restructuring at its Mediapolis SpA unit.
In a statement, Clear Leisure said the cost of the credit line is GBP135,000, and it will also issue GEM with 11.5 million five-year warrants at 4.4 pence a share.
Clear Leisure said back in November that Milan-based building contractor Generali Investimenti Holidng had made an unsolicited, but binding and fully-financed, bid for its 69.45% stake in Italy-based Mediapolis. It then got another identical bid from Fornest Ltd, a UK investment company which manages the interests of certain Italian investors, in January. The only difference was that the second offer expires at the end of September, while the first offer expires at the end of April.
However, the proposed deals were complicated by Mediapolis's debt structure, and in mid-January it applied to a tribunal in Italy for clearance of a debt restructuring proposal. The tribunal is still reviewing the information.
Last month, Clear Leisure said it will pay a special dividend worth GBP4 million if the Italian courts allow Mediapolis to complete a proposed debt restructuring, allowing the British investment company to sell its stake in the unit to one of two bidders.
"The company further envisages that it may also use the facility to support the debt restructuring proposal for Mediapolis which the board believes may significantly increase the company?s negotiating power with potential investors or buyers of its Mediapolis project," Clear Leisure said in its statement Tuesday.
Mediapolis is a 670,000 square metre tract of real estate which has been approved for the development of a major theme park, hotel, shopping complex and commercial activities.
Clear Leisure shares were up 15.3% at 2.45 pence Tuesday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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