Bank withdraws Cains support
Shares in Liverpool brewer Cains have been suspended after its bank withdrew support.
In its interim results of 28 July Cains announced that it was in advanced negotiations with its bankers, Bank of Scotland, regarding the renewal of its banking facilities following losses of £4.5m in the six months to 28 April.
The directors believed that the Company would be able to reach agreement with its bankers regarding appropriate levels of funding, but noted that there was a material uncertainty over the Group’s ability to continue as a going concern.
The Company’s bankers have now informed Cains that they are not prepared to support the proposals that have been put to it by the Company.
Accordingly, the Board of Cains requested the suspension.
A statement said: “A further announcement will be made as appropriate.”
Cains undertook a £37m reverse takeover of Honeycombe Leisure in May 2007, which saw Cains acquire 92 pubs and a listing on the Alternative Investment Market.
The Bank of Scotland provided £40m, of which £30m was a loan facility, £5m in working capital and £5m to fund refurbishment of the pubs.
Cost of servicing the interest on debt amounted to £1.2m in interest for the most recent six month period, compared with just £66,000 a year ago.
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