19th Feb 2020 08:59
(Alliance News) - PureCircle Ltd said Wednesday it has secured approval from its lenders for an amendment to its senior facility agreement, which took effect on Tuesday.
The amendment provides for a full waiver of all previous defaults, while the company also secured an additional USD8.6 million in liquidity for the business from shareholders through an unsecured subordinated loan.
"This agreement and additional liquidity is a significant step forward for PureCircle as we move to resolve the issues which came to light during 2019. We would like to thank our lenders for their ongoing support," said Chief Financial Officer Jimmy Lim.
PureCircle - which produces sweeteners - had said in September it would approach its banks for waivers, following the revelation of a potential issue with the way that inventory was classified and valued, with an aggregate exposure of up to USD30 million. Professional advisers were then hired to undertake an investigation.
"Investigations continue as to the root cause of the errors, but the board has seen no evidence that the issues arose as a result of any fraud or impropriety," PureCircle said in October.
As a result, Chicago-based PureCircle has delayed the publication of its annual results, leading to its London shares being suspended from trading since October.
By Dayo Laniyan; [email protected]
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