Waterford Wedgwood has warned shareholders that if it fails to raise money through an open offer and placing of shares, it will not have enough cash to run the company in a year's time.
The company, which owns Waterford Crystal, announced on Tuesday that it planned to raise €153.7m, with chairman Dr Tony O'Reilly and deputy chairman Peter Goulandris committing to subscribing for €60m worth of shares.
In a document sent to shareholders, the company says that if the money it plans to raise does not become available, its sales and margins would be damaged, while it would also be in danger fo breaching agreements with its lenders.
Waterford said the money would be used to implement an accelerated programme of cost-cutting, to reduce debt and to increase advertising and marketing of its brands.
The cost-cutting measures include the completion of a previously-announced plan to cut numbers at Waterford Crystal by 500 before April next year. The company says 283 workers have already left under this programme.
