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Carpetright's Purley Way, Croydon store, one of the first to be refurbished under current management
The shareholder and lender that agreed to loan Carpetright £12.5 million over the next six months now owns one sixth of the company.

 

Asset management outfit Meditor has a 16.5 percent stake in Britain's largest floorcoverings retailer as a result of 3.4 million new shares issued as part of the loan deal.


Carpetright announced the unsecured loan agreement as it revealed a wider strategic plan whereby it hopes landlords will back a Company Voluntary Arrangement (CVA) that will allow it close an unspecified number of stores.


It said Meditor was a significant shareholder but didn't quantify that in its statement to the stock market last week.


The unsecured 3.0 percent coupon loan is due to be paid back August 31, while its terms include a £1.9 million arrangement fee, of which £1.4 million is to be applied by Meditor in subscribing for the just-issued shares.


Meditor describes itself as taking a "bottom-up stock-picking approach," taking positions in what it believes are undervalued stocks that have potential for favourable returns.


As it announced last week, Carpetright hopes to raise between £40m–£60 million from an equity issue later this year as part of the wider CVA and restructuring plan.


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