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Proventec reaches restructuring agreement

Published 13th August, 2010 by Neil Nixon

Proventec reaches restructuring agreement

Further to recent announcements regarding the capital restructuring of Proventec Plc, Thomas Stücken, chief commercial officer, has announced that the company has now reached an agreement in principle for a comprehensive capital restructuring with the representatives of the loan notes. The highlights of the agreement are that the prior debt will largely be converted into equity and there will be a cash injection of £2.5 million.

Proventec plc is the group parent of cleaning industry brand names Contico, OspreyDeepclean, Frank, and Proventec Healthcare, as well as a small number of other specialist non-cleaning industry companies.

Stücken said: “The new development in fact will create a near debt free company with a clean balance sheet and demonstrates the support of the financial market in Proventec Plc and provides a platform from which to continue the growth of the company. This will enable the business to leverage its unique proposition as a leading provider of integrated hygiene systems to the UK and indeed the global markets.”

It is likely that the restructuring will require the approval of shareholders and it is the intention of the board that, if so required, an appropriate circular to shareholders calling a general meeting of the company will be sent out as soon as possible.

The healthcare division of the group recently received a Framework Agreement from the NHS Supply Chain for cleaning brushes, mops, buckets and associated products, valued at £4 million. This follows another recent tender award from the Scottish NHS.

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