Eddie Stobart Logistics has been granted a reprieve by its former owners after shareholders voted for an injection of cash from DouglasBay Capital.
Under the transaction DouglasBay Capital (DBAY) will acquire a 51% stake in the company as well as providing a £55million loan through an interim payment in kind facility (which accrues interest at 18% per annum), granting Stobart the necessary liquidity to continue trading.
DBAY has also negotiated on behalf of the company a new revolving credit facility of £20 million.
Sébastien Desreumaux, chief executive of Eddie Stobart, said: “The proposed transaction provides Eddie Stobart with the opportunity to move forward and look to deliver sustainable growth and profitability from a stable footing.
“Our main priority and focus is now continuing to deliver the high levels of services expected by our customers as we move into the busy Christmas period.”
DBAY said: “We would like to thank shareholders for supporting our transaction which will bring immediate stability to the business. Eddie Stobart’s loyal staff are the best in the industry and we are pleased to be able to provide certainty over their jobs throughout the Christmas period and beyond.
“We would also like to thank the lenders to the company for their flexibility which will be invaluable in returning Eddie Stobart to a stable footing.
“Finally, our thanks go to the supportive customers who have continued to trust Eddie Stobart and its brand, and the suppliers who have continued to trade with it.”
Earlier this month DouglasBay Capital had said that former director William Stobart would return to the business as part of its offer.
An alternative offer from former chief executive Andrew Tinkler – via his company TVFC 3 – was not backed by shareholders.