CTR has hope at the brink of receivership
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by Miles Brignall • Central Trailer Rental, the troubled trailer leasing firm, has unveiled a financial restructuring plan that seems to have been agreed by its bankers.
CTR's executive chairman Ian Clubb said rejection of the plan would probably result in the business being put into receivership. He also announced the sale of its rail division which would raise £26m to be invested in new trailers.
The restructuring announcement comes after 18 months of negotiations with the firm's banks and bond holders and involves a debt-for-equity swa:, that will relieve the company ot £231m of debt.
The company, formally known as Tiphook, plans to swap the debts for approximately 45'6 of equity in a bid to halve the current interest charges of about £40m, which should allow the firm to return to profit.
In thr :-,tx months to the end of October 1995 CTR made an operating profit of £13.2m but faced interest charges of £20m.
Although a final decision has yet to be made, most shareholders are understood to be in
favour oi tile re,tructuring, despite being left with just a 159.‘ stake in the firm.
"It could have been a lot worse for shareholders," says a US backer.