Thu., October 3, 2013
Pawnbroker Albemarle & Bond (A&B) is in rescue talks with its banks after an attempted rights issue failed on Wednesday, The Guardian reported. Britain's second-biggest pawnbroker admitted that after four months of talks it had been unable to persuade its biggest shareholder, US pawnbroker EZ CORP, to underwrite the proposed £35m cash call. The company is now close to breaching its banking covenants and is "focusing its efforts on constructive discussions with the banks". Without an agreement by 30 October its net debt - £51m at the end of last month – will come perilously close to breaking its agreed borrowing threshold of £53.5m. The news knocked 59% off A&B's share price, sending its shares to 28p and valuing the company at £15.6m. Little more than two years ago its market value was £224m.