Hospitality industry finance company Silver Chef, which has been struggling to recapitalise its business, has received a takeover offer from private equity group Next Capital.Silver Chef announced that it had received a non-binding, indicative and conditional offer to acquire all of its shares for $1 a share plus deferred consideration made up of a share of any net capital released from the run-off of its GoGetta equipment rental business.Silver Chef is in breach of its debt covenants and has waivers in relation to both its syndicated debt facility and its securitisation warehouse facility, allowing it to raise capital.It must raise $45 million by April 30 to pay down the syndicated facility. It has a non-binding term sheet with a mezzanine debt provider but completion is conditional on the company raising a minimum of $20 million of equity.The company has appointed Morgans Corporate as lead manager for an equity raising, but the recent sharp fall in its share price (down from $1.55 to 85 cents over the past six weeks) has made that task difficult.In the meantime, conditions imposed with the waivers have constrained the business. The company is currently only able to originate from available cashflow. This has "significantly reduced the near-term financial outlook for the company and reduced the effectiveness of the proposed capital management plan".The Next Capital offer is conditional on the completion of due diligence and approvals from Silver Chef's lenders for ongoing finance and waivers.The company's problems go back to its decisions, early last year, to get out of its GoGetta business, which was not making an acceptable return and was also in trouble with the regulator. Write-downs of expected returns from GoGetta and an increase in provisions tipped the company into loss in 2017/18 and the six months to December.Those write-downs also caused the company to breach its financial covenants.ASIC took the view that some of GoGetta's contracts were actually consumer lending and that the company did not have the appropriate licence. The company has made a provisions for around $4 million for customer remediation.