Boostheat announced on Thursday that it would be able to finance the continuity of its restructuring plan, without however ruling out the scenario of a cessation of payments or even compulsory liquidation.

The energy efficiency specialist explained that it had asked to be authorized to receive one million euros from HBR, the personal holding company of its CEO Hugo Brugière, and to sign a 30 million euro financing line with European High Growth Opportunities Securitization Fund (EHGO).

These operations were intended to enable the thermal compressor manufacturer to cover its cash requirements, estimated at 2.3 million euros, under its proposed safeguard plan.

Boostheat also points out that HBR has provided a guarantee of 10 million euros, covering the company's liquidity risk over the next 12 months.

However, the juge-commissaire has rejected all the company's requests
, a rejection which could lead to a cessation of payments and therefore a possible judicial liquidation of the company.

In this context, HBR says it has approached the private equity fund Iris with a view to the latter transferring to it the current contract for the issue of bonds redeemable in new shares (ORA) for 10 million euros, of which seven million remain to be used.

This solution could enable Boostheat to finance the observation period and the reorganization necessary to ensure the company's long-term viability, safeguard jobs and pay off
creditors.

Hugo Brugière, Boostheat's CEO, said: "I deeply regret the way in which the procedure has evolved, but I am determined to give the company all the opportunities that its industrial project deserves.

The company's share price has been suspended since the end of August.

Copyright (c) 2022 CercleFinance.com. All rights reserved.