Mellon requisitions Billing Services meeting

24th Feb 2011 18:34

Jim Mellon and Isle of Man-based Manx Financial have requisitioned a general meeting at AIM-quoted Billing Services Group (BSG) in order to change the make-up of the board. AIM-quoted Manx and Jim Mellon, who own 24.54% of BSG between them, want to remove Patrick Heneghan, Thomas Richter and Admiral Leighton Smith as directors of Texas-based BSG and have Denham Eke and Swen Lorenz appointed to the company's board. Mellon is chairman of Manx and Eke is its chief executive. Chief executive Greg Carter says that the requisitioning of a general meeting is unwelcome and cause unnecessary expense. He points out that Heneghan and Richter were reappointed as directors as recently as last October. Shares in BSG have lost three-fifths of their value in the past year. The provider of payment and financial risk management services to the telecoms industry predicted a big drop earnings and revenue earlier this month. The firm predicts EBITDA of $20m-22m for 2011 and revenue of $104m-109m, down from $38.9m and $146.5m respectively in 2010. "The realities of the current market conditions are clearly constraining the company's performance and the financial covenants in the company's credit agreement are scheduled to tighten in 2011," it said. "Consequently, the company shortly expects to conclude an amendment to its credit agreement to accommodate the current financial outlook."