LONDON (Alliance News) - PeerTV PLC shares plummeted on Tuesday after the proposal to restructure the loan notes of its subsidiary, Digitek SMT Assemblies Ltd, was not approved at a meeting of the subsidiary's loan note holders.
PeerTV shares were down 31% to 1.38 pence per share on Tuesday afternoon.
Internet television products company PeerTV tabled restructuring proposals for holders of secured loan notes issued by its Digitek subsidiary back in late-November after Digitek failed to secure approval at a meeting to restructure its loan notes.
PeerTV tabled its own proposals because it was no longer willing to fund the subsidiary, although it also said it remained fully committed to the television-over-the-internet business. PeerTV made an offer to noteholders in Digitek to exchange 100% of the loan notes in issue for a 70% stake in Digitek.
However, PeerTV was hit by another blow as only 73.1% of the votes cast at a meeting with the loan note holders approved the proposed restructuring, just shy of the 75% needed.
"The company will now consider the options available to them. A further announcement will be made in due course," said PeerTV.
Digitek is currently a wholly owned subsidiary of Digitek Holdings Limited, which is 64.1% owned by PeerTV.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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