Avtech raises capital as turnaround deadline extended

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Swedish flight operations specialist Avtech is extending its restructuring programme while the loss-making company plans to issue more shares.

The developer of air traffic management systems and procedures says that it has held an unscheduled general meeting where it was decided to issue additional shares. The share capital should thus be raised to between SKr 1.27 million ($195,000) and SKr 5.08 million.

In June, the Stockholm-based company revealed it was going to cut staff and reorganise its business units with a respective management reshuffle in order to slash costs and grow sales. This restructuring phase was due to be completed by 27 August.

However, Avtech now says that it has applied for three-month extension with the local district court for the changes. The reorganisation is expected to be completed by October.

Fixed costs are to be cut by 35% to SKr 850,000 a month while four staff members are made redundant.

As part of the management reshuffle in June, Avtech's former chief executive, David Alvord, took over the Aventus NowCast business unit, while Christer Staaf became the company's new chief executive.