Bingo clubs operator Top Ten Holdings is in breach of its debt covenants and it has agreed in principle new facilities which will give its bank most of the upside for the business.
The shares slumped 0.75p to 0.875p each, which values Top Ten at £220,000. Top Ten intends to cancel is Aim quotation in order to preserve cash.
Top Ten is losing money due to the interest payments it has to make.
Top Ten breached its first bank covenant in June 2008 and breached another in September 2008. Bank borrowings total £30m and part of the new deal would give the bank “a substantial proportion of any eventual increase in the value of Top Ten “ above that figure.
Negotiations are continuing and further information will be released in a circular.
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