High-interest loan keeps Stobart on the road

SCANDAL-HIT trucking company Eddie Stobart Logistics has been forced to accept an emergency high-interest loan to avoid a collapse before Christmas that would put more than 6,500 jobs at risk.

The business is taking a £55m loan from investment firm Dbay Advisors – with interest charged at an initial rate of 25pc. The deal will give Dbay a majority stake in the company, saddling existing shareholders with massive losses. The cash injection came after Eddie Stobart’s banks refused to lend it more money, as it grapples with a multimillion-pound accounting black hole.

One insider said: “If the deal doesn’t happen soon, it could be curtains.”

Eddie Stobart has been racing to finalise its accounts after being engulfed in an accounting scandal that led to its Aim-quoted shares being suspended three months ago. It revealed late on Thursday that losses before interest and tax will be at least £12m for the six months to May, with the board advising shareholders to back the Dbay deal.

Banks have agreed to give Eddie Stobart breathing space in November even though it is thought to have breached covenants – rules set by lenders – leaving the firm in default. Interest on the Dbay loan will reduce to 18pc once the rescue has been completed.

Auditor PWC is yet to sign off Eddie Stobart’s half-year figures. Logistics company Wincanton, which is preparing a counter offer for the business, is waiting for the auditor’s approval before finalising an approach.

But it is understood that PWC will not provide support until fresh funding has been agreed – the only other source of which is from Dbay.

Nevertheless, yesterday Wincanton was granted an extension until Nov 27 to make an offer. The logistics company urged Eddie Stobart shareholders not to take action following Dbay’s offer earlier in the day.