Independent directors of wealth management applications supplier Bravura Solutions have recommended shareholders vote in favour of a recapitalisation proposal for the company to meet its debt obligations.
The directors intend to vote all their Bravura shares in favour of the recapitalisation project in the absence of a superior proposal, according to Bravura chairman Chris Ryan.
“We have considered alternatives to the proposal, including reviewing a number of other unsolicited expressions of interest, but none of these were considered to have the same value and certainty as the proposal.”
He said if the proposal proceeds, Bravura would be able to meet its repayment obligations to its lender, BOS International (Australia), scheduled for August 15 this year.
It will also enable Bravura to “eliminate uncertainty” surrounding Lift Capital margin loans to Bravura Solutions managing director Iain Dunstan and director Simon Woodfull, which relates to a 30.3 per cent of the Bravura’s shares.
On February 4 this year Dunstan and Woodfull received a NSW Supreme Court judgment pointing in favour of them regaining control of key Bravura shareholdings that were tied up as a result of last year’s collapse of Lift Capital.
Investors would have the opportunity to increase their investment in Bravura in a rights issue planned for August this year if the proposal is approved, Ryan said.
Bravura would also reconsider reinstating dividend payments, which it suspended earlier this year, if the proposal and rights issue went ahead, he said.
