1st Oct 2013 07:33
LONDON (Alliance News) - Concha PLC Tuesday said Churchill Media Ltd has defaulted on a GBP750,000 loan and GBP50,000 interest.
Concha first made the loan in March 2012 for a ten-month period and extended it in January and March of this year, latterly with revised terms. The loan, which bears interest at 6% above Libor and is secured against Churchill Media's assets, was then expected to be repaid before the end of September.
Concha went into talks with Churchill Media in August to see whether it could repay the loan in cash or by handing over assets to Concha.
"The company can now confirm that, whilst discussions remain ongoing, Churchill Media has failed to repay the outstanding balance and accrued interest related to this loan by 30 September 2013. Accordingly, a notice of default has been issued today by Concha to Churchill Media," Concha said in a statement.
Concha said it is still talking with Churchill Media and its only director and shareholder, Richard Thompson, but reserves the right to exercise its rights under the loan agreement.
Churchill Media's assets include investments in a number of tech, media and telecom businesses.
Concha said it will provide further updates in due course.
Concha was down 21% at 0.185 pence early Tuesday, the biggest decline on AIM.
By Steve McGrath; [email protected]; @stevemcgrath1
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