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Brainytoys farewells WalkerRACHEL DONKIN, The West Australian
November 2, 2009, 1:15 pm
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Former football identity John Walker has stepped down from one-time toymaker Brainytoys four months after his appointment, as the listed shell company heads back to the drawing board for a new direction.

Mr Walker's departure follows that of fellow ex-director Richard Simpson, who resigned a week earlier.

Marketing executive Colin Manie will step through the revolving door at the dormant company to take over from Mr Walker, a former WA footballer and boss of Thrifty Car Rental.

It is understood Mr Walker departed after a plan to backdoor list his Planet Power Energy through Brainytoys collapsed.

Also today, the company confirmed it had struck a recapitalisation deal with Athan Lekkas' boutique corporate advisory firm Dalext, to raise $2 million for ongoing working capital.

In exchange for co-ordinating the reconstruction, Mr Lekkas will take two seats on the Brainytoys board.

"The directors believe the capital to be provided pursuant to the recapitalisation plan will assist the company to implement its business plans in a timely manner," new managing director Colin Oxlade said in a statement.

"The terms of the reconstruction deed are considered to be attractive for the company and its shareholders, particularly in the current market and economic environment."

The company did not disclose terms of the deal, which is subject to due diligence and comes after the company in June announced it expected to secure a $1.5 million convertible note to enable it to re-emerge from suspension.

Long-suffering shareholders have watched the stock's re-invention from Speedy Wheels to Auto Enterprises before emerging as Brainytoys in 2004. Its shares have been suspended since January and last traded at 1¢.

No details have been offered about a potential future direction.