Meditor buys Carpetright’s debts
Carpetright’s major shareholder has bought the group’s debts, but holds off from seeking a seat on the board.
Meditor European Master Fund has bought Carpetright’s £40.7mcredit facility from NatWest and AIB.
It has also effectively bought the chain’s £6.5m overdraft with NatWest and Ulster Bank after agreeing with the banks to provide funding for the overdraft.
‘In connection with the arrangements Meditor did not seek any assurances from the company, did not propose board representation and did not request structural changes in the business. Meditor has confirmed it now intends to engage with the company with a view to providing a more stable and longer-term funding platform,’ says Carpetright.
Carpetright borrowed twice last year from Meditor ahead of its CVA. The first loan, in March was for £12.5m, with an arrangement fee of £1.9m and 3% interest. The second, a £15m loan in May, had a £2.3m arrangement fee and 18% interest rate.