National Express finally receives some good news
After a very traumatic period in the life and times of National Express the company has today received some welcome good news with the announcement that the government will not withdraw the company's two remaining rail franchises as a punishment for handing back the East Coast mainline franchise. The company itself is battling for its survival with debts now punishing the group and the directors looking to push through a rights issue and fundraising to save the operation.
However, there is a revolt amongst shareholders with the company's largest individual shareholder the Cosmen family well and truly against any additional shares being issued. They believe the company needs to investigate a straight forward refinancing of the company's debt as well is a possible merger with Stagecoach. The family have recently increased their stake in National Express and are looking to build-up institutional support for a total revamp of the operation.
The company is currently against a very strict deadline with the news of a multi-million pound penalty clause in the company's debt arrangements if the figure is not reduced by the end of the year. As a consequence, time is now of the essence and the sooner all parties can come to an acceptable agreement the better!
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