The Ventracor Shareholders Group has submitted a Deed of Company Arrangement (DoCA) to Ferrier Hodgson (Ventracor's administrator). The DoCA describes a plan to recapitalise the company as follows;
1. A group of cornerstone investors will loan Ventracor sufficient funds to satisfy 100% of creditor claims.
2. This loan is to be secured by way of fixed and floating charge over the company's assets.
3. This loan would return Ventracor to solvency and allow the company to be brought out of administration.
4. A meeting of shareholders would be called to vote on;
(a). Changes to the board, including the appointment of Michael Spooner (former ventracor CEO).
(b). A debt to equity swap in which the cornerstone loan would be converted to shares.
5. The company would be relisted on the ASX.
6. A share purchase plan & placement to sophisticated investors would be carried out.
7. Further capital raisings are likely before the company is profitable.
In addition to the recapitalisation plan outlined above the following are proposed;
1. Most current employees would be offered continuous employment and transmission of entitlements.
2. Most recently terminated employees would be offered reinstatement.
Shareholders who have registered with the Ventracor Shareholders Group will be sent a copy of the DoCA today. If you are a shareholder you can register at; www.saveventracor.com/Pages/register.html
Saturday, May 23, 2009
Thursday, May 7, 2009
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