Plan B...loan from Ashley3 Apr 2019 23:13
Sports Direct has been given until 8 April to decide whether to meet the demands or face having its 29% stake is wiped out as Debenhams’ lenders take control of the department store’s equity. Ashley spent about £150m building the stake. The billionaire, who bought House of Fraser out of administration last year, believes that together the two department store chains could be turned into a far better business.
Debenhams said on Friday it had agreed £101m of immediate new money from its lenders, £40m of which would replace a short-term loan taken out last month. A further £99m is subject to Ashley’s sports retail group agreeing to either a firm offer for the company, including refinancing all its debts and providing new working capital, or the provision of a minimum of £200m in new funds via a loan or participation in a rights issue.