Payzone set for egm

ON FEBRUARY 10th, shareholders in loss-making mobile top-up group Payzone will gather in Dublin for an extraordinary general …

ON FEBRUARY 10th, shareholders in loss-making mobile top-up group Payzone will gather in Dublin for an extraordinary general meeting.

Payzone’s net assets are less than half its called-up share capital, which under Irish company law requires an egm to be held. Payzone’s board might give details of a proposed debt-for-equity swap with its lenders. It has net debt of about €290 million.

On January 14th, Aim-listed Payzone said it was in “constructive discussions” with lenders to “establish a more appropriate long-term capital structure”. Ominously, it added: “Any such new capital structure will likely result in no value for existing shareholders.”

So Balderton Capital, former chief executive John Nagle and others are set to be wiped out.

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Payzone had a market value of £200 million-plus after its 2007 IPO. Has anyone told George Lee?

Ciarán Hancock

Ciarán Hancock

Ciarán Hancock is Business Editor of The Irish Times