2nd Oct 2013 11:55
LONDON (Alliance News) - Engineering company Hightex Group PLC Wednesday said it has raised EUR255,00 by way of a short term loan, which has been advanced to its subsidiary SolarNext AG to pay its creditors.
Hightex, which designs roofs for large buildings, said the terms of the loan are yet to be finalised, but it anticipates the loan will be for a six-month term and be secured against 100% of the share capital of SolarNext. Most of the money is coming from its directors and current shareholders.
It is proposed that the loan be repayable on March 31, 2014 and carry a coupon of 10% per annum payable on redemption. It is also proposed that if the loan is not repaid on time, the holders will receive approximately 39.2% of the share capital of SolarNext which will be distributed pro-rata to the amount of the loan subscribed.
The company said it is intended that the providers of the loan will have an option to acquire the remainder of SolarNext on terms that will require approval by all shareholders.
Hightex shares were suspended last week because it's not in a position to publish half-year results as it awaits payments from three contracts from its Brazilian joint venture, a hole that has put its future in doubt.
At that time, Hightex had said that SolarNext revenues were lower-than-expected in the first half year, but it expected the unit to reach a near break-even result in 2013 and becomes profitable in 2014.
The stock was trading at 2,399.00 pence Wednesday afternoon, down 1.00 pence or 0.0%
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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