Shareholders of Eddie Stobart have approved a rescue plan from DBay Advisors.
One of Stobart’s largest shareholders, DBay Advisors will loan £55million through high-interest bonds of 18% and take control of the company. Because of the approval, the haulier will avoid breaking any banking agreements and avoid administration.
In return for the payment-in-kind (PIK) loan, DBay Advisors will increase its stake in Eddie Stobart to 51%. Not only will this prevent Eddie Stobart’s collapse, but it will also allow DBay to claim any money it makes, as debts are paid before shareholders see any payments.