9 December 2009
International multi-skilled consultancy, WYG, has, as planned, written to its shareholders confirming the terms of its proposed refinancing and asked them to vote on the proposals to secure the financial future of the company.
If the shareholders vote in favour of the refinancing deal, the Group’s banks will convert some £53m of debt into equity and provide new lending facilities totalling £58.25m and €38m of committed bonding facilities to help put WYG on a strong and sustainable financial footing.
60.5% ownership of the Company will transfer to the banks, 24.5% to staff and management and 15% to existing shareholders. As a result of this structure, WYG’s listing on the stock exchange will be transferred from the Main Market to the Alternative Investment Market.
Paul Hamer, Chief Executive, WYG Group, said: “The purpose of the refinancing is to reduce the level of the Group’s debt and to create a strengthened and more appropriate financial structure that we can use as a platform to build a sustainable, strong and resilient long term business that is better positioned to compete more effectively in its chosen markets.
“We need existing shareholders to vote in favour of the proposed refinancing agreement to create a stable, long term financial future for the Company, secure around 2,700 jobs and create renewed confidence to our clients.”
The voting closes on Monday 4 January 2010 and an Extraordinary General Meeting will follow on Wednesday 6 January 2010 to seek final shareholder approval.
Without the majority of existing shareholders voting in favour of the proposed refinancing, it is likely that it would lead to the Company entering into administration or some other form of insolvency procedure.
Paul said: “With our new leadership team and a restructured balance sheet, we are putting in place fundamental building blocks to enable us to secure around 2,700 jobs, continue our award winning work with existing and new clients, and look to create future value for our shareholders utilizing a more focused and efficient business model.
“The Board and its advisors strongly urge shareholders to vote in favour of this proposal,” he added.