31st Aug 2018 10:47
LONDON (Alliance News) - Travel agency firm Minoan Group PLC said Friday it expects to conclude shortly the sale of its travel & leisure unit to its primary lender, which should see it completely repay its secured loan facility.
After negotiations, Minoan expects to sell its Stewart Travel Ltd business to major creditor Zachary Asset Holdings Ltd. This was following the "consideration of approaches from other prospective buyers".
The loan from Zachary has only been extended until the end of August. The firm explained, however, that in light of the proposed sale it "does not believe that the loan will be called pending the completion of negotiations and the culmination of the transaction, which should see it repaid in full."
Meanwhile, Minoan has begun its cost-reduction programme. The first action of this is to cut the fees paid to its Executive Chairman Christopher Egleton by half.
"Following a sale on the expected terms, the group expects that it will have completely repaid its secured loan facility and removed a major source of future dilution, albeit at the expense of an immediate increase in the issued capital, which will not affect the fully diluted figure," Minoan explained in a statement.
Further details will be announced when the final terms of the sale have been secured.
Shares in Minoan were flat at 5.40 pence on Friday.
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