Debt-ridden Highbury House suspends shares
13 December 2005 09:29
Kelvin MacKenzie may not be amusedFront publisher Highbury House has suspended trading in its shares after talks to refinance its debts - which amount to around £25m - collapsed.
The publisher has been struggling to get itself on an even keel following the failure earlier this year of its plan to sell its consumer magazine division to Future. The Office of Fair Trading refused to clear the deal on competition grounds.
Highbury eventually sold 38 titles to Future, and in August 2005 disposed of its Real Homes magazine to Hachette Filipacchi and closed its two loss-making home interest magazines, Home and Inspirations.
It also found a buyer for its South African operations in September, but despite its best efforts to dig itself out of the mire - and the £1.5m or so invested by Kelvin MacKenzie, who became its chairman in September - Highbury's decision to delist itself from the AIM stock market suggests its future is uncertain.
In a statement issued to the City late yesterday, the company said: "Highbury House announces that discussions with its lenders concerning a refinancing of its indebtedness and a related issue of equity have now been terminated. As a consequence, the group has requested that dealings in its shares be temporarily suspended pending clarification of its financial position.
"Discussions continue between the group and its lenders, which continue to be supportive of the group, and the future viability of the group is dependent on the successful conclusion of these discussions. A further announcement will be made as soon as practicable."
Highbury also announced today that David Sebire, a non-executive director of the company, has resigned with immediate effect.
By Graham Hayday
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