Airbath Share Discussion Threads

[charmer1_23] 22/4/2005 16:12

RNS Number:4285L
Airbath Group PLC
22 April 2005


AIRBATH GROUP PLC

DEBT RESTRUCTURING, TRADING UPDATE, PROPOSED DE-LISTING AND APPROACH UPDATE

22 APRIL 2005


The Directors of Airbath Group plc (the "Company") announce a restructuring of
the group's debt, a trading update, the proposed de-listing of the Company's
ordinary shares of 1p each ("Ordinary Shares") from AIM and an update on the
approach made to the Company.

Debt Restructuring

Key elements of the restructuring are as follows:
* New secured funding of approximately #1.3 million.
* Group net debt reduced by approximately #2.7 million.
* Issue of warrants to subscribe for new Ordinary Shares equivalent
to 5% of the Company's issued ordinary share capital.

The group has obtained new secured funding of approximately #1 million from
asset financing and new secured debt of #300,000 from Gartland Whalley and
Barker plc ("GWB"). As part of the restructuring, GWB has transferred to
Barclays Bank plc 35% of its holding of 7% cumulative preference shares of #1
each in the Company and the Company has issued warrants to Barclays Bank plc
enabling it to subscribe for up to 1,270,400 Ordinary Shares at par at any time
before 21 April 2015.

The secured debt provided by GWB, which owns 55.92% of the Ordinary Shares, is a
medium-term secured mezzanine loan of #300,000, with a further facility of
#200,000 if required. The interest rate on the loan from GWB (and the further
facility) is 8% per annum, payable monthly in arrears. There is also a
monitoring fee which the Company is to pay to GWB, which is initially set at
#3,000 per month, subject to a pro rata increase if the further facility is
drawn down. Repayment will be in two instalments: #150,000 (or 37.5% of the loan
if greater) by 31 March 2006 and the balance by 31 March 2007.

As part of the process, an intermediate holding company, Airbath Holdings
Limited, will enter into a company voluntary arrangement. This should have no
adverse consequences for unsecured trade creditors of the group.

After the restructuring the group will have no material ongoing liabilities to
its existing bankers and its net debt will have been reduced by approximately
#2.7 million.

The Directors, excluding Phillip Bennett and Mike Dunn who are respectively
managing director and assistant director of GWB, consider, having consulted with
the Company's nominated adviser, that the terms of the restructuring are fair
and reasonable insofar as the holders of Ordinary Shares are concerned.

Trading Update

Trading in the second half has been disappointing due principally to weakness in
the bathroom sector and the Directors believe that profitability has been
further hit by the continued trend towards lower margin products.

Proposed De-listing

It is the Directors' intention to seek shareholders' approval to de-list the
Company from AIM. A circular giving full details of the rationale for this
decision and notice of extraordinary general meeting will follow in due course.

Approach Update

Finally, the Directors had previously reported that it was in discussions with a
third party which might lead to an offer being made for the Company. These
discussions have ended and the Directors do not foresee any offer arising from
them.


For further information, please contact:

Airbath Group plc Tel: [phone]
Lawrence Warriner, Group Chief Executive

Westhouse Securities LLP Tel: [phone]
David Simmons

[sharw] 22/4/2005 15:15

True but v. sad really. With increase in turnover in the first half of the current year running sales are £14.5m giving a very low price to sales ratio. Not quite so low if you take net debt of £4.1m into account and do an EV/sales ratio.

That is the only good figure going for the company which has negative assets and is in breach of banking covenants. Even if stability is restored the dividends and arrears on the prefs will have to be paid before ordinary shareholders get anything. Furthermore, the prefs happen to be owned by the majority shareholder, GWB.

[wiganer] 22/4/2005 13:12

Is that header really correct? £14m of sales? Mkt cap £190k?
That is v.funny if true.

[mkearns] 11/4/2005 14:06

Is that you Neo?

[roberto george] 11/4/2005 14:05

I rest my case .

Good afternoon .

[mkearns] 11/4/2005 14:04

LOL!

Nice chart

[roberto george] 11/4/2005 14:04

He's such an easy target , it has ceased to be worthwhile .

IMHO

Rgds

Tom279

[roberto george] 11/4/2005 14:03

Mike

Is it a coincidence that they all post on the Pete Barnes thread ?

Rgds

Rob

[mike crowsoft] 11/4/2005 14:01

Robbo

Lets be honest.

I don't have any followers, but there are several people who can see clive for what he is.

rgds

The Mayor of Hamlyn

[roberto george] 11/4/2005 13:58

Mike

I was making reference to your "followers" .

Rgds

Werty

[mike crowsoft] 11/4/2005 13:56

It is Robbo.

I assume thats why clive has disappeared, as he must have re-read a lot of his posts fuelled by shandy.

[roberto george] 11/4/2005 13:55

Mike

Let's be honest , it is embarrassing at times .

Rgds

7C

[mike crowsoft] 11/4/2005 13:51

Robbo


LOL!

rgds

The Pied Piper

[roberto george] 11/4/2005 13:46

Mike

The problem is not you , it's your "followers" I'm afraid .

Rgds

Thomas of Thailand

[mike crowsoft] 11/4/2005 13:45

Bull Robbo.

It was the little toerag who went round trashing threads that I and others posted on.

Lets hope he's developed amnesia and has forgotten his username and password.

[roberto george] 11/4/2005 13:37

kany

TK has got fed up with the Pete Barnes thread regulars following him around the threads .

IMHO

Rgds

7Dell

[kany] 10/4/2005 21:10

Mike, where is TK??, haven't heard from him for a while now.

[mike crowsoft] 23/3/2005 22:42

I don't think he's old enough to attend yet.

Besides, he's still getting to grips with his 3x table.

[wal footrot] 22/3/2005 23:11

Leave it off the proper stock threads would you mate?

[knowing] 22/3/2005 21:53

Do the MMs know something or are they trying to make a market ?

[knowing] 22/3/2005 16:57

No large T then !! ????

[knowing] 22/3/2005 14:01

LOL

Looking for something else to talk down after RTM this morning are we ?