LONDON (Alliance News) - Management Resource Solutions PLC Wednesday said its reverse takeover of Australia's D&M Group will be delayed after the lender of the money required to complete the deal defaulted on its obligations.
Management Resource Solutions had previously flagged "potential difficulties" over drawing down the funds needed for the acquisitions, which will cost AUD6.7 million plus the granting of 1.7 million warrants in Management Resource Solutions shares.
The company had agreed a AUD17.1 million debt facility with Halycon Capital Management Pty Ltd to fund the deal, refinance both its own existing borrowing facilities and those of D&M, enable future investment and provide additional working capital.
According to Management Resource Solutions, Halycon "defaulted on its obligations under its agreement and the directors of MRS consider that there is little prospect of this situation changing".
That has left Management Resource Solutions with no other choice but to seek alternative financing.
"Accordingly, and with the full support of the vendors of the D&M Group, negotiations have been restarted with a number of alternative funders in both Australia and the UK. The company will make a further announcement once alternative funding has been secured but shareholders should be aware that this may take many weeks," Management Resource Solutions said.
The company's shares have been suspended since it flagged the trouble in drawing down the funds.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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