April 12, 2018 / 7:27 AM / 3 months ago

BRIEF-Carpetright Cva Proposal And Equity Capital Raise Update

April 12 (Reuters) - Carpetright PLC:

* CVA PROPOSAL AND EQUITY CAPITAL RAISE UPDATE

* PROPOSAL TO ENABLE GROUP TO UNDERTAKE A FUNDAMENTAL RESTRUCTURING OF ITS PROPERTY PORTFOLIO

* DIRECTORS OF COMPANY HAVE FINALISED TERMS OF A CVA WHICH IS INTENDED TO RESTORE VIABILITY OF GROUP’S BUSINESS MODEL

* SAVE FOR LANDLORDS COMPROMISED BY CVA, CVA PROPOSAL WILL NOT SEEK TO COMPROMISE CLAIMS OF ANY OTHER CREDITORS

* COMPREHENSIVE REVIEW OF COMPANY’S PROPERTY PORTFOLIO HAS IDENTIFIED 205 SITES IN UK THAT ARE UNDERPERFORMING AND/OR ON UNFAVOURABLE LEASE TERMS

* LAUNCH OF CVA PROCESS DOES NOT AFFECT CURRENT ORDINARY COURSE OPERATIONS OF GROUP AND BUSINESS CONTINUES TO TRADE AS A GOING CONCERN

* CARPETRIGHT WILL SEEK CREDITOR APPROVAL OF CVA PROPOSAL AT A MEETING TO BE HELD ON 26 APRIL 2018

* CARPETRIGHT CURRENTLY EXPECTS TO RAISE NET PROCEEDS OF APPROXIMATELY £60 MILLION THROUGH AN EQUITY CAPITAL RAISING

* 92 SITES HAVE BEEN IDENTIFIED FOR CLOSURE IN SHORT TERM UNDER CVA PROPOSAL

* SINCE COMPANY LAST UPDATED MARKET ON 1 MARCH 2018, TRADING CONDITIONS HAVE REMAINED DIFFICULT

* STILL EXPECTS TO REPORT A SMALL UNDERLYING PRE-TAX LOSS FOR THE YEAR ENDING 28 APRIL 2018

* 113 SITES BEING SUBJECT TO A REDUCTION IN RENTAL COSTS AND REVISED LEASE TERMS

* TECHNICAL BREACH HAS BEEN IDENTIFIED WITH RESPECT TO COMPLIANCE WITH BORROWING POWERS IN COMPANY’S ARTICLES OF ASSOCIATION

* PROCEEDS WILL BE USED TO FUND ON-GOING STRATEGY, REDUCE INDEBTEDNESS AND COVER COSTS ASSOCIATED WITH CVA

* GENERAL MEETING WILL HELD ON 30 APRIL 2018

* COMPANY EXPECTS TO LAUNCH EQUITY CAPITAL RAISING ON OR AROUND 18 MAY 2018 Source text for Eikon: Further company coverage:

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