Meat and pastry product company Canterbury Foods has told the financial markets that it is in discussions with third parties which may lead to the sale of one or more of its businesses. The company’s future depends on a deal to restructure bank debt, it said.

Whilst these discussions have lead to offers being made, the aggregate value of these offers is materially below the current indebtedness of the company, it said. The marketing of these businesses has been extensive so that the directors do not consider it likely that significantly higher offers will now be received. Consequently, if all the company’s businesses were sold and the Company’s debts discharged there is almost no prospect of a surplus for shareholders.

The directors hope to be in a position to be able to announce the first disposal shortly, the company said. Completion of this proposed disposal would be conditional upon shareholder approval at an extraordinary general meeting.

The directors consider that the best prospects for the company are to retain one or more of its businesses and agree a restructuring of the remaining bank debt following completion of the first disposal. The bank has indicated that it will consider a proposal to restructure the bank debt following completion.
However there is no certainty that a restructuring can be agreed. In the event that terms for the restructuring of the bank debt cannot be agreed there is almost no prospect of the group continuing to trade in its current form or that there will be any residual value for shareholders.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.