Charlton plan £20M bond issue

Charlton are seeking approval from shareholders to raise up to £20million through the issue of a new convertible bond.

Shareholders will be asked to approve the issue of up to 66,666,667 convertible secured corporate bonds, each having a face value of 30p, at a general meeting of shareholders on March 10.

Some £14million of the proposed issue has already been underwritten by five existing Charlton plc directors - Richard Murray, Derek Chappell, Bob Whitehand, Sir Maurice Hatter and David Sumners.

The total sum raised will be used to repay recent loans made by these directors to support the company following relegation from the Premier League, and to provide working capital for the company during the remainder of this season.

Charlton chief executive Peter Varney said: "The board has given careful consideration to all the options available and wants to reduce the reliance on short-term loans and bank overdraft, and replace them with long-term debt that can be converted to equity at a later date. The amount raised is not intended to be used for the acquisition of players."