API Group, which produces foils and laminates for packaging, has reacted to a plunge in its share price by reassuring the market it is making progress towards resolving funding problems.
Following an 11p fall in its share price to 25.5p today (28 November), the firm said discussions were continuing in a "positive and constructive manner" with its banks and advisers, and key shareholders continued to be "highly supportive".
"The solution may take the form of a renegotiation of the company's banking facilities and/or an equity issue," the firm said.
API will make a further announcement once a solution has been agreed.
API said last month that recent investments in China and the restructuring of operations in Europe would have a positive impact on results for the year.
The company recorded a £2.1m loss in the six months to 31 March, following a "disappointing" 2006 that revealed a slump in its European business. Growth in laminates was offset by poor demand for metallic foils and pigments.
Andrew Turner, formerly of Alcan Packaging, took over as API Group's chief executive last month.
Source: packagingnews
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