Centurion on the march again
Centurion Electronics, which makes in-car DVD players, looks to have escaped the administration many investors feared following the announcement of an in-principle agreement with its lenders.Centurion Electronics, which makes in-car DVD players, looks to have escaped the administration many investors feared following the announcement of an in-principle agreement with its lenders.
Centurion’s shares were suspended in November after its bank, HSBC baulked at the level of its borrowing.
An announcement to the Stock Exchange said that Centurion’s lenders would agree to cancel its debt and other obligations in return for a cash payment and partial conversion into new ordinary shares.
The re-financing package requires agreement at an EGM, the date of which has not yet been announced. Shareholder agreement will also be sought for a share placing and the issue of a convertible loan note, aimed at raising sufficient funds to cancel the loan and provide working capital.
Trading in Centurion shares should re-start the next business day after the EGM.
Chris Rhodes, Centurion chief executive, said he was hopeful of rebuilding the company having jettisoned Centurion’s loss-making retail division.
The company already has deals in place with Toyota among other manufacturers and it is understood new deals will be announced soon.
Although an announcement on the matter has been a long time in coming, the company hinted at a positive outcome in January when it announced the appointment of a new sales director.