By George MacDonald2019-10-31T07:20:00
Carpetright is in talks about a potential takeover offer from its financier Meditor as the retailer seeks cash to repay debt and provide working capital.
The retailer said it needs £80m to cover obligations and push ahead with its turnaround strategy. Talks have been held with Meditor, which owns Carpetright’s revolving credit facility and funds its overdraft, about a possible offer at 5p per share.
The revolving credit facility is due to expire on December 31, as are overdraft facilities provided by Natwest and Ulster Bank but funded by Meditor. An unsecured loan from Meditor expires next summer. Carpetright’s net debt is expected to increase to between £40m and £50m in December.
Carpetright looked at various long-term financing options including standard “high street” refinancing, asset-backed lending, strategic asset sales and equity financing before beginning sale talks with Meditor.
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