The wind-down of indebted Digital 9 Infrastructure (DGI9 ) has taken a key step after lenders green-lighted the sale of trophy asset – datacentre operator Verne Global – to Ardian of France.

Completion of the deal still requires regulators’ approval in Iceland and Finland, but DGI9 said it now expected to be able to repay £284m-£294m of its £375m debt facility.

Although a further disposal will be needed to clear its debts completely, the Verne proceeds would cut group debt to £250m-£260m and reduce its annual interest costs by £25m-£26m.

If the company can arrange insurance to cover its indemnity costs, more of the revolving credit facility (RCF) could be repaid. 

The exact amount repaid will also depend on whether Verne can strike new power supply agreements with Iceland before the transaction completes.

Among amendments to the borrowing terms, the lenders have required DGI9 to set up a reserve account for interest payments which Liberum analyst Shonil Chande estimated would amount to £5.6m.

He viewed the statement positively as it was evidence of constructive dialogue between the board and lenders.

‘Retiring the RCF in its entirety will require at least a further sale beyond Verne, given that the earn-out is a long-term term potential source of cash. Receipt of the initial cash proceeds and the contingent payment is expected to amount to £350m, assuming completion and excluding the insurance cost,’ Chande said.

DGI shares edged 0.3% higher to 18.9p, leaving them at a yawning 82% discount to net asset value (NAV), Chande said. The 31 December NAV is expected shortly and is likely to be cut as the board reflects its efforts to sell the remaining assets as quickly as possible. The shares have plunged 80% since floating three years ago.