Capital & Regional suffered a brutal share sell-off yesterday amid concerns that its flagship fund had breached its banking covenants. The Times
After the market closed the company acknowledged the 'market concern around the capital structure of the Mall Fund'.
The firm has just over £600m of debt on its balance sheet. Including debt also held by the three funds C&R part owns and manages, the company is directly responsible for a total of £1.3bn of borrowings.
A year ago C&R shares were worth nearly £17, giving it a £1.2bn market value. Yesterday the shares slid 15%, down 56.5p to 376.75p, giving it a market value of £266m.