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Rescue cash call by Quadrant

Friday 11 April 1997 18:02 EDT
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Quadrant Group announced a capital reorganisation and plans to raise pounds 5.6m through a placing and open offer of 5.6 million shares to stave off collapse. The maker of electronic video and precision-engineered products said the 100p-per-share offer price was pitched at a 23 per cent discount to current mid-market prices "due to financial difficulties".

The difficulties relate to the imminent need to repay loan commitments to Carlton Communications. A rescheduling of the loan had been agreed with Carlton but was conditional on the placing and open offer taking place, the company said. "Shareholders should be aware that if the placing and open offer does not proceed the agreement with Carlton amending the terms of its loan would fall away and in these circumstances the directors believe that the company would be unable to continue trading."

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