26th Sep 2013 11:27
LONDON (Alliance News) - AEC Education PLC Thursday said its Singaporean operation had been lent up to one million Singapore dollars, or about GBP500,000, by the head of the unit to keep it going while it works towards getting its license to operate reinstated.
In a statement, the education company said the loan from the chief executive of the Singaporean unit, David Ho, would be drawn down in SGD250,000 tranches, with the first taken immediately. The drawdowns will be charged 8% interest a month and are repayable a year from when they are made, or earlier if the unit gets other funding.
AEC had its Singaporean license suspended by authorities for six months in August, meaning it can't recruit foreign students for its MBA programme. It has been reassessing English language entry requirements as part of an attempt to address regulatory and compliance issues raised by the authorities. It had said it would reapply for its license in November.
It had expected the unit to rack up a loss of GBP450,000 for the first half of the year.
AEC Education shares were down 11.1% at 3 pence Thursday afternoon.
By Steve McGrath; [email protected]; @SteveMcGrath1
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