6th Nov 2015 09:18
LONDON (Alliance News) - Media and marketing company Reach4Entertainment Enterprises PLC on Friday said it has proposed a series of amendments to restructure its GBP14.8 million loan facility with Irish lender AIB Group (UK) PLC.
Under the terms of the amendment, ABI will no longer convert GBP5.2 million worth of the debt into shares in Reach4Entertainment or receive a European put option on the shares.
Instead, it will be granted warrants over the same value of shares, exercisable within five years at a price equal to the group's proposed equity fundraising, which it still remains in talks on.
AIB is considering the proposals, Reach4Entertainment said.
The group also said it expects revenue for 2015 to be in line with market expectations, though its earnings before interest, taxation, depreciation and amortisation will be dependent on its trading in the fourth quarter.
Reach4Entertainment shares were down 14% to 2.05 pence on Friday, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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