2nd Feb 2015 09:37
LONDON (Alliance News) - Coral Products PLC Monday said that Executive Chairman Joe Grimmond has lent it GBP200,000, which it will use alongside existing bank financing to bridge a short-term funding gap in the wake of the administration of one of its major media customers.
The news comes after Coral said last month that it had received notice of the appointment of administrators to The Video Duplicating Company Ltd, to which it supplied DVD and CD boxes. However, a silver lining is that the board of Coral now expects the the loss arising from VDC's administration to be lower than previously expected.
Last month Coral had estimated that the loss arising from VDC's administration could be GBP500,000, but its latest expectation is that the net accounting loss after tax will not exceed GBP300,000.
The loan from Grimmond shall accrue interest at a rate of 5% per annum, payable every six months from May 1. The loan is repayable over three years and is secured against tooling for food containers held by Interpack Ltd, one of the company's subsidiaries.
Coral shares were down 2.6% at 9.25 pence on Monday.
By Samuel Agini; [email protected]; @samuelagini
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