Struggling pawnbroker Albemarle & Bond has asked for the suspension of its shares after its lenders refused to back a management turnaround plan for the business.

Albemarle, which has taken a hit from falling gold prices, said it had asked for the suspension on the AIM market because it needed to clarify its financial position after its lenders told it of their decision over the weekend.

Albemarle said it was continuing to work with its banks on possible alternative options.

But it said the possibilities, which may include selling the business for less than the debt it owes, provide "no realistic prospect of any value being attributable to the company's ordinary shares."

Lenders have said they may agree to extend a current covenant deferral deal beyond an existing expiry date of March 31st under certain circumstances.

Albemarle added that if they refused to do so, it may have to repay outstanding debt. "Although the company has sufficient cash headroom to meet current trading requirements, if the entire debt facility became repayable it would not be able to meet this liability," it said.

Albemarle has faced problems from people not pawning gold as the gold price has fallen and has also struggled to sell gold at sustainable prices, forcing it to melt down some of its gold jewellery stocks to meet lending limits.

PW

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