Ailing Stirling company Superglass is celebrating a successful share placing, as it bids to raise nearly £13m for a huge refinancing project.
The insulation company moved to complete the share placing, having agreed a deal in principle with its creditors. Under the plans, Superglass will use the cash to pay its £3m debt to Clydesdale Bank, exchanging £5.7m into convertible shares.
The deal will allow the firm to continue trading, and avoid insolvency.
The deal was agreed at a shareholders’ meeting in the middle of May 2013, where a warning was issued that failure to agree the terms would result in the firm being wound up.
The plans, which will also see Superglass delist from the main stock market, are similar to those put in place by other Scottish companies in recent times.
With many now struggling with existing debts and to secure ongoing credit facilities, alternative commercial finance in Scotland is being favoured. Many are managing to sustain daily operations through factoring, for example.
Others are using such facilities, particularly invoice discounting, to push forward with expansion plans too, picking up the scraps from those firms falling by the wayside.
Expressing his delight, the chairman of Superglass, John Colley, thanked the firm’s investors.
Going on to say that a hoped “resurgence in market volumes” will allow the new strategy to realise profits, Colley will be eager to see the company reverse its 2012 falls in revenue and sales.
The past six months have seen a 20% fall in cash flow, contributing to a pre-tax loss of £200,000.