The warning follows the news that discussions with Glasgow-based private investor LNC Property about a reverse takeover of the quoted airports and property group had ended. LNC is backed by Dublin-based software tycoon Brian McCabe.
The fallback option proposed by the board is a placing of offer shares and a placing of loan stock to raise £46.35 million ($80.8 million). Qualifying shareholders are invited to apply on the basis of one offer share for every six existing ordinary shares. The placing and open offer is designed to repay mezzanine debt of around £16.1 million ($28.1 million) and to cut other debt by £17.65 millionn ($30.8 million), as well as providing £12.55 million ($21.9 million) of additional working capital.
Wiggins said: "The directors believe that the placing and open offer provide the only viable option to restore the company to a secure financial position." The statement added: "If the placing and open offer are not approved at the EGM, your directors will have no alternative but to apply immediately for administration or to commence an insolvent liquidation of the company."
Shares in Wiggins, which were suspended on 17 July when discussions with LNC were announced, began trading again today.
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