The move is part of a proposed capital restructuring that will also raise a net 拢30m for the business, formerly White Young Green, by placing 64m shares with institutional investors.
The company said that it could no longer sustain its debt burden, despite a similar restructuring just two years ago that shed 拢53m of debt by converting it to shares. Having made 38 acquisitions in the 10 years to 2007, WYG was over-stretched when the downturn came.
Earlier this month WYG reported a 拢28m pre-tax loss for the year to 31 March 2011 on 拢121m revenues. The previous year it made a 拢22m loss. Non-executive chairman Mike McTighe said: "Much has been achieved over the past two years to recreate a stable operational platform. Today's proposals will provide WYG with significant positive cash balances, a strengthened balance sheet and the ability to incentivise its employees, so creating a significantly stronger position from which to take advantage of the growth opportunities that now exist for the group.鈥�
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