Car dealer Pendragon shelled out £1.3million to City advisers for work on a planned rights issue that never happened, it was disclosed yesterday. The group, which trades as Stratstone and Evans Halshaw, was gearing up to tap investors for emergency funding.
But the board then decided the move was not necessary after striking a three-year debt restructuring deal with its banks. Yesterday, Pendragon chief Trevor Finn was challenged about the £1.3million.
He was asked whether he now considered the fees for the aborted share issue was a waste of shareholders’ cash. Finn said: ‘Clearly we would like to have not have spent it. But every good general has a plan B – it was an insurance policy we needed at the time.’
Source: Daily Mail