Banking Crisis

Midas Capital Loses CEO, Restructures Debt

Rachel Walsh 27 March 2009

Midas Capital Loses CEO, Restructures Debt

Simon Edwards, chief executive of Midas Capital, the £2 billion ($2.8 billion) Liverpool-based fund boutique, is to stand down after the firm announced a debt restructuring that will give a considerable amount of equity to creditors.

Bank of Scotland is to take just under a 20 per cent stake in the company as part of an agreement to restructure the company’s £36.5 million debt burden. The group floated in February last year after a £100 million reverse takeover by Iimia MitonOptimal.

The restructuring announced on Thursday, which is subject to shareholder approval, will permit the company’s shares to continue to trade on AIM.

Of the £36.5 million owed to Bank of Scotland, £14 million will be converted into cumulative redeemable preference shares and £12 million into a new senior debt facility.

The remaining sums due to the bank will be converted into ordinary shares and warrants to subscribe for further ordinary shares representing 19.99 per cent of the company’s issued ordinary share capital upon completion of the restructuring.

“We have reached a constructive outcome with Bank of Scotland and we are pleased with their long term support for Midas. The capital structure of the business will be stabilised under these proposals and our key teams can focus fully on investment performance and customer service in a more stabilised working environment,” said executive chairman Colin Rutherford.

A spokesperson told WealthBriefing Mr Edwards is still very much involved in the business but will now be spending 100 per cent of his time on fund management. He will revert to his previous role as chief executive of Midas Capital Partners Limited. 

As part of an ongoing process of widening the executive roles on the board, the company also named Anthony Moore as the new chief financial officer.

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