(Alliance News) - DBAY Advisors Ltd on Friday said the UK Financial Conduct Authority has approved the "change in control" application necessary for its proposed financing of Eddie Stobart Logistics PLC.
DBAY Advisors, 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.
On Friday, DBAY Advisors said all material terms of the banking documents necessary for its proposal have been agreed. Once in place, the financing will safeguard jobs for Eddie Stobart's employees and secure delivery of the services for its customers during the Christmas period.
Eddie Stobart has convened a general meeting on Friday to secure approval for the DBAY rescue plan.
Separately, TVFB, controlled by Eddie Stobart's former Chief Executive Andrew Tinkler controlled, has also proposed a plan to rescue the logistics firm. The plan would see Eddie Stobart raise GBP80 million in equity.
Shares in Eddie Stobart are currently suspended from trading in London, having been so since August, amid its financial problems.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
