F&I Management & Training

Car dealership group Inchcape is considering a significant fundraising as it negotiates new financial arrangements with its lenders and the steepest sales downturn in recent history. Inchcape is examining options which include a rights issue or share placing, although a decision about whether to pursue such an option is not imminent. Inchcape, which is being advised by Deloitte on the talks with its lenders, has committed bank facilities of more than £1 billion, well in excess of its debt burden. Inchcape declined to comment to the Sunday Telegraph, which broke the story. However, yesterday (Monday, January 12), the company issued a statement in which it said: "The Group expects trading conditions to remain difficult and is engaged with its finance providers to ensure that these arrangements are appropriate for a downturn in trading. As would be expected, it is also evaluating a range of options for its capital structure including a potential equity issue. "As outlined in our trading update on 15 December 2008, we continue to expect to report underlying results for 2008 in line with our previous expectations and the Group remains in compliance with its financing arrangements. A further announcement will be made in due course."

DATED: 13.01.09

FEED: AW