Quoted airports & property group Wiggins has told shareholders to either back a share issue to raise £46.35m or face administration.
This follows the news that the debt-laden company has ended reverse takeover discussions with Glasgow-based LNC Property.
Wiggins’ board said that if the placing and open offer were not approved by shareholders, “your directors will have no alternative but to apply immediately for administration or to commence an insolvent liquidation of the company”.
The company owns four airports, including Manston in Kent, and plans to sell its property portfolio to fund its airport operations under its new name: PlaneStation Group.
The placing and open offer is designed to repay crippling mezzanine debt of around £16.1m and to cut other debt by £17.65m, as well as providing £12.55m of working capital.
Wiggins’ results for the year to 31 March 2003, published on Wednesday, show a pretax loss down to £12.8m from £27.5m and turnover up to £38.1m from £12.7m.
