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Article: Australia: Struggling Capral in $47m raising.
- Article from:
- TendersInfo
- Article date:
- August 31, 2009
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Byline: sanjayV03
RON Brierley's Guinness Peat Group is again backing a recapitalisation by struggling aluminium fabricator Capral.
Under a $47 million proposal unveiled late on Friday, Capral will undertake a $37.5m placement at 25c a share, a one-for-one rights issue to raise $9.7m and conversion of a $13m loan from GPG to equity.
The plan, which is likely to cut GPG's stake in Capral from 76 per cent to less than 50 per cent, will slash Capral's debt from $119m to $14m.
Independent expert Lonergan Edwards & Associates assessed the package as "fair and reasonable", arguing there was a "very high risk" that administrators would be ...