Rob Woodward yesterday took another step towards solving SMG's long-standing debt problem when he secured a £90m loan facility with HBOS, but its shares still plummeted 20%.
The five-year arrangement, which is on standard banking terms, follows the company's announcement earlier this month that it is to raise £95.1m in a rights issue.
The shares will be offered to existing shareholders on the basis of two new shares for 15p each for one existing share.
The company, which owns STV, is sitting on the best part of £130m of debt and was seeking a way to postpone the sale of its Virgin Radio business until it can get a better price.
The company said it expects to repay all of its existing debt on completion of the rights issue on December 18.
Appetite for a float or trade sale of Virgin has waned in tighter credit markets, but SMG hopes that by improving its debt position it will be able to sell its Virgin stations from "a position of strength".
Virgin's book value was written down to £105m earlier this year. The company originally bought it for £225m from DJ Chris Evans' Ginger Media Group in 2000.
SMG shares fell 3.25p yesterday to 12.5p, a new low.
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