9th Nov 2016 11:11
LONDON (Alliance News) - Porta Communications PLC Wednesday said it has agreed to settle debt due from its subsidiary Twenty20 Media Vision Ltd to Hawk Investment Holdings Ltd, a company owned by former director Bob Morton.
It will do so via the allotment and issue of 9.1 million new shares in the company.
Twenty20 went into administration in February, and at that time it had loans outstanding due to Hawk which it defaulted on by virtue of going into administration.
Porta noted that, due to cross default provisions contained within Hawk's other loan agreements with Porta, it has agreed to settle the Twenty20 loans.
Following the issue Morton will hold, via his ownership of Hawk and Hawk Pension Fund Ltd, an interest in 54.1 million shares, or an around 18.25% stake in the company.
"We are pleased to have satisfied this liability, which results in no cash outflow from the company. This loan conversion represents the first step in optimising the company's capital structure and consolidating our financial position, following the series of start-ups and corporate acquisitions that we have made over the past few years. We continue to evaluate our balance sheet and future capital requirements," said Finance Director Gene Golembiewski.
Shares in Porta Communications were down 3.0% at 4.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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