Ailing quoted estate agent Humberts has raised around £2.25m by issuing new convertible loan stock to shareholders.
The estate agency, 20% owned by Vincent Tchenguiz’s Consensus, announced in February that it had outstanding debt of £3m.
Humberts received a preliminary approach from an investor to buy the company in January, but yesterday announced takeover talks had ended.
But this morning at the agency’s AGM Humberts’ chairman John McLean told the company’s annual general meeting that it had raised a large amount of the cash needed by issuing loan notes worth £2.25m to its principal and institutional shareholders.
McLean said 83% of the principals approached took the offer and have agreed to take convertible loan stock, ownership of the company’s regional businesses, instead of the cash they are owed.
‘This high take up has given us great encouragement and we believe it will have a twofold positive impact on the business,’ said McLean.
However, McLean continued: `Current difficulties in the mortgage market lead the Board to believe that there will be little improvement in the volumes of residential sales for the remainder of the company’s financial year.’