AssetCo's shareholders pledge more support

AssetCo's major shareholders are rallying round the cash-strapped outsourced fire services provider, ready to chip in with money to boost working capital.Earlier this week the company said that some of its creditors reacted to news that the company is raising fresh funds through a placing by demanding earlier payment of monies owed.This has put constraints on working capital and endangered the success of the share placing, so a number of the major shareholders of the company have indicated that, in the event that AssetCo cannot meet its needs from banking sources, they would be prepared to provide additional support for the company's requirements. This support is subject to a maximum of £10m, which the company believes should be more than ample to meet its needs. If the support is provided by means of further equity it is intended that it would be at not less than the placing price of 10 pence per share, the company said. Andy Hanson, analyst at Northland Capital Partners, said: "We view this morning's statement as disappointing but not unsurprising. Initially the company stated its financing requirement at £8m but today's statement suggests that the real figure is closer to £26m. We would hope this resolves the immediate financing issues and the placing completes without any further hitches on Tuesday 29th."