26th Feb 2015 18:38
LONDON (Alliance News) - Eco City Vehicles PLC Thursday said it has completed its refinancing process relating to the company's voluntary agreement, and said it has issued the convertible loan notes approved by shareholders and used some of the funds to pay the supervisors of the voluntary agreement, which will lead to the company resuming trading on AIM from March.
Eco City Vehicles, which converted and sold Mercedes Vito vehicles for the London taxi market, fell into administration last October after suffering a sharp sales decline and losing its deal with Mercedes. However, the company exited administration in December and entered into a company voluntary agreement, with management and control of the company being handed back to directors. Last month, the company said that it was hoping its shares would return to trading on AIM following the publication of its first half results.
GBP250,000 worth of convertible loan notes have now been issued, and Eco City has used GBP143,000 to pay Kirstie Jane Provan and Mark Robert Fry of Begbies Traynor (Central) LLP, as joint supervisors of the company's voluntary agreement, it said.
The company said it has applied for the new shares to be admitted to trading on AIM with effect from March 3, when it expects trading to resume.
Following the the company voluntary agreement, Eco City will now become an investment company, focusing on the telecommunications, media and technology sectors.
"The placing of the convertible loan notes was successful and the share reorganisation will be implemented once the suspension of trading in the company's ordinary shares on AIM is lifted, which the board hopes will occur shortly after the publication of these results," the company said last Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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