Payzone Refinancing Deal Now Possible

The e-payments group’s bankers will  have to write off a large percentage of its debts in return for a minority investment in the company.  Payzone would be acquired by a newly-established company backed by the unnamed private equity firm and the company’s existing bankers including AIB, Bank of Scotland, Royal Bank of Scotland and Abbey National.

The firm’s board “noted” the continued support of its finance providers, and said it remained confident that an “appropriate long-term capital structure” for the business would be found. Payzone’s shares were suspended at the company’s request pending a further announcement.

Payzone emerged from the 2007 merger of Irish e-payments group Alphyra and UK ATM operator Cardpoint.  Its shares initially listed at 76p in 2007, giving it a £200 million-plus valuation, but had declined to 0.4p before yesterday’s suspension, pushed downward by poor trading, internal disagreements and divestments.

Payzone’s largest shareholder is Balderton Capital, the venture capital group led by Barry Maloney, which owns 54 per cent. Former chief executive John Nagle, who was sacked in 2008, is the second biggest investor. Payzone is led by Mr Maloney’s brother Mike Maloney.  Over the past year the firm’s management has attempted to streamline the business by selling off international assets and cutting costs.

PetrolWorld 060210