Assetco, the company behind London's fire engines, appears to be in more trouble this morning.
It dipped on Monday when it announced it was raising emergency cash through a rights issue. That dip was then overtaken by the announcement of a significant new Middle East contract.
Today it has said it needs the help of its banks to carry out its equity placing. The company announcement read:
In order for the proposed equity placing to proceed, the Group will need to obtain waivers of the existing technical breaches of the banking facilities referred to in the announcement made on 14 February 2011 and the Company is confident that these waivers will be obtained.
The market probably already knew much of this, but the announcement was enough to make investors fret again about the company's future. The shares fell 3.25p to 20p, a drop of 14%.
