Glass Firm Blows Hole

Glassmaker Pilkington is attempting to resolve a £193m hole in its balance sheet that could emerge if an offshore financing scheme unravels in March, a report has said.

Pilkington reportedly confirmed there was £193m owed to preference shareholders in a Channel Islands subsidiary as at the end of 2002, the Guardian said. Shares could be redeemed any time after March 4, Pilkington said.

The report quoted a spokesman as saying Pilkington had put in place new lines of credit with existing banks to cover about £100m of the amount.


The company was confident it can secure the additional £93m needed through new credit lines with other lenders, and a deal is expected by the end of this month, it said.

Pilkington said it could have refinanced the shares out of existing facilities, but wanted to keep some headroom, it said.

The "black hole" had deterred Japan's Nippon Sheet Glass Co. which holds a 20% stake in Pilkington, from launching a bid for the company, the Guardian said.

The preference shares were a legacy of previous managements, dating back to the 1980s when they were used to finance acquisitions, the report said.

600450 Glass Firm Blows Hole

See more news about:

Others also read

Local quality glass producer Emirates Glass Limited has won contracts to supply 68,000 square metres of its high quality EmiCool glass to five major projects in Dubai.
Southwall Technologies Inc. (Nasdaq:SWTX), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, today announced that on Dec. 18, 2003, it secured an agreement for a new bank loan guarantee and equity financing package of up to $7.5 million from Needham & Company, Inc., its affiliates and Dolphin Asset Management.
When did the wine industry start using glass bottles, and how did they settle on their current size of 750ml? For the answer to these questions, you have to go back in time - back thousands of years to when wine was first cultivated and enjoyed.
Praxair, Inc. (NYSE: PX) today announced that its subsidiary Praxair Canada Inc.'s specialty gases plant in Paris, Ontario, Canada, is one of Praxair's first specialty gases plants in North America to complete the upgrade to ISO 9001:2000, the latest ISO 9000 standard for quality.
KUB Malaysia Bhd has accepted an offer from Nippon Sheet Glass Co Ltd (NSG) to acquire its 15% stake in Malaysian Sheet Glass Bhd (MSG) for RM32.6 million in cash, or RM2.68 per share.
Co-Ventures in Glass Containers (CVIGC, Ltd.) of Tampa, Florida, USA and Micro-Tek Canada, Inc. Of Toronto, Canada are excited to announce the beginning of a long term joint venture to combine their extensive experiences and resources to offer the Glass Container Industry globally a best value alternative for all their outsourcing needs in manufacturing, operations and technical assistance agreements, specifically targeted to the smaller manufacturers who have found the larger service companies to be cost and profit prohibitive.The principals of the two companies have found a global need for smaller glass companies who require excellent technical resources to properly compete within the industry without the high costs of employing their own staffs or outsourcing their requirements to the larger service companies whose own operating costs and overhead are substantial.

Add new comment