22nd Jun 2015 10:52
LONDON (Alliance News) - PeerTV PLC said Monday that subsidiary Digitek, in which it has a 64.1% interest, is meeting with secure loan noteholders to consider a proposal to restructure the loan notes to improve Digitek's working capital position and avoid a default.
Additionally, PeerTV said Speech Modules Holdings Ltd, in which it has a 17.72% interest, has agreed to raise up to GBP1 million in a private placement with a London based corporate finance firm. This is intended as a precursor to the listing of Speech Module's shares on AIM, PeerTV said.
Since 2012 Digitek has raised GBP2.1 million through the issue of secure loan notes, and as of Monday around GBP1.95 million is owed to the secured loan noteholders. It has not paid some interest and amounts due on the secured loan notes, and as a result is putting forward proposals to the noteholders.
This includes modifying the interest rate on the loans, waiving and releasing the company from breaching the terms of the loan notes caused by the failure to make payments.
If the proposals are agreed, Digitek will not be obliged to make any further payments until the beginning of 2016, although it may chose to repay the outstanding accrued interest of GBP150,000 before then, and it will be able to enter into trade finance agreements to assist with its development.
Shares in PeerTV are trading up 17% at 0.199 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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