(Alliance News) - Andrew Tinkler on Wednesday asserted that Eddie Stobart Logistics PLC is not facing a liquidity issue in the next week.
A firm controlled by former Chief Executive Tinkler, TVFB, has come up with its own plan to rescue the logistics firm, which would see Eddie Stobart raise GBP80 million in equity.
DBAY Advisors Ltd, which holds 27% of Eddie Stobart, has offered a GBP55 million lifeline in exchange for a 51% stake in the entity which holds Eddie Stobart's assets.
The two have since traded blows, and TVFB said Wednesday it has continued to gather shareholder support, with "consistent" feedback suggesting its proposal is far more popular among Eddie Stobart shareholders than DBAY's.
"TVFB confirms that, based on current levels of support, following the equity injection, up to nearly 50% of Eddie Stobart will be owned by existing shareholders and that all existing shareholders will be given the opportunity to participate," said TVFB.
"The company should therefore endorse TVFB's proposal as its own rescue equity fundraising. As an alternative, the board has the option to delay the general meeting on December 6 by a week, by which time, having received full engagement from the board, the equity issue will complete."
"Contrary to the message which TVFB has been told has been conveyed to certain shareholders and the banks, based on the information made available to TVFB, there is no upcoming liquidity issue within the next week," TVFB added.
It also said, as a show of confidence, it has approached Eddie Stobart with a GBP20 million bridge loan.
The meeting on Friday will see Eddie Stobart shareholders decide whether to accept the DBAY funding proposal.
Shares in Eddie Stobart are currently suspended from trading in London, having been so since August, amid financial problems.
By George Collard; georgecollard@alliancenews.com
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