Carpetright has managed to secure £15 million in emergency funding pushing its CVA closer to final approval.
The substantial loan will be provided by Meditor European Master Fund Limited, Carpetright’s biggest shareholder with just under 30 per cent.
This struggling retailer’s CVA, which is set to see 81 stores close and threaten 300 jobs, now only needs a successful £60 million capital raising to go ahead, which is due to take place on May 18.
Last month it announced that it had secured backing from both shareholders and creditors, and needed interim funding help with short-term working capital requirements.
Meditor, which has already provided Carpetright with a £12.5 million loan, has set a repayment date of July 31, 2020, with an interest rate of 18 per cent which will compound monthly and will be paid in a lump sum at the end of the loan’s term.
Its previous loan is expected to be repaid via the £60 million rights issue later this month.
Carpetright’s shares were down 0.5 per cent this morning, after previously taking a beating on reports it would post a pre-tax loss of between £7 million and £9 million.