Bookie's Shareholders Kept in Running by Deal; RBS the Royal Bank of Scotland
Byline: Karen Dent
SHAREHOLDERS in collapsed bookmaker Neville Porter have agreed to a rescue deal to turn the business into a shell company, which will be used to acquire another business.
The move got the green light at an extraordinary general meeting, where shareholders in the Birtley company were informed of the approach by London group Coran Investments Ltd.
Coran, a specialist in transforming failing listed companies by using them to acquire other businesses, has taken the reins at Neville Porter, which has been renamed LP Hill Investments plc.
Coran Investments director Nigel Weller said: "It brings it back from the grave. It will be used as a shell vehicle to make an acquisition in a larger company.
If we hadn't come along and refinanced it, it would have been in administration." Coran Investments put together a deal to repay Neville Porter's creditors under a Company Voluntary Arrangement - an agreement between an insolvent company and its creditors which allows the business to pay some or all of its debts from future profits or the sale of assets.
Creditors will be offered a total of 100,000 new 1p ordinary shares in the company, which will be divided among those making a claim within three months of the CVA being agreed.
Coran plans to refinance the company by issuing 400,000 new 1p shares.
It will hold 200,000 of these and will also put up a pounds 50,000 loan to provide working capital. …