Brixton is Fighting for Existence

On Friday, the indebted property firm Brixton was negotiating a possibility of merger with potential applicants. The company cherishes a hope to find out a white-knight who will gloriously settle accounts with constantly growing company’s debt. The direction of the company says that it is too early to talk about any results. To remind, large assets of industrial and logistics property around London’s Heathrow Airport belong to the company. The outstanding economic recession and the crunch of the banking system affected the property value of Brixton’s assets that were reduced by more then 40 per cent compared with June 2007. However, Brixton is not intended to get money out of shareholders, but to sell assets to lower its debt load. Brixton is planning to test the agreement based on Brixton's unsecured bonds after the publication of the half-year results. The company is left to lessen the possibility of any covenant break as long as to search for new ways to conduct the financial flexibility of Brixton, such as the restriction of arrangements, a potential equity raising and further selling of the company assets. Whereas the major parts of Braxton’s rivals (British Land, Land Securities, and Liberty International) are issuing shares to increase loan-to-value agreements.