Redstone: Unit Disposal Procees To Cut Bank Debt
August 14 2009 - 10:19AM
Dow Jones News
Redstone PLC (RED.LN), a provider of integrated IT solutions,
said Friday it will use the GBP17 million in proceeds from the sale
of its telecoms and mobile divisions to reduce its bank debt
MAIN FACTS:
-Unit sold to Daisy Telecoms Ltd, wholly owned subsidiary of
Daisy Group PLC (DAY.LN).
-Bank debt after completion will be GBP14 million and net debt
will be GBP17 million.
-Notwithstanding significant debt reduction, group still needs
to resolve long term financing position and it continues to
negotiate with Barclays Bank PLC (BCS).
-Exploring other ways to reduce indebtedness through further
asset disposals, cost reductions or raising new funds.
-Transaction focuses Redstone on delivering ICT services to
mid-market and enterprise clients, including Building Schools for
the Future.
-Agreement subject to completion of TUPE consultation process
and any working capital adjustment capped at GBP500,000.
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com