30th Oct 2015 16:12
LONDON (Alliance News) - Reach4Entertainment Enterprises PLC said Friday its lender AIB Group (UK) PLC has agreed to extend the deadline by which it has to repay AIB, to give time for the company to work towards securing funding.
The company needed to secure funding in order to fulfil its repayment obligations under its conditional agreement with AIB Group to restructure its existing GBP14.9 million loan facility with AIB, by no later than the end of October.
Last Sunday the company received an offer for a new 3 year secured asset based debt facility of up to GBP9.5 million with PNC Business Credit, made up of a GBP1 million term loan and a revolving credit facility of up to GBP8.5 million, based on qualifying accounts receivable. This would be used to refinance the AIB loan, and provide the company with working capital.
PNC's provision on the new facility is subject to certain conditions, including requiring Reach4Entertainment to raise a minimum of GBP3.5 million of new equity capital.
The company said that it has been in talks with a number of potential investors, and these discussions remain ongoing. AIB "remains supportive" of the company's fund-raising efforts, Reach4Entertainment said, and agreed the extension to enable it to conclude its discussions with these investors.
Shares in Reach4Entertainment were untraded Friday. It last closed at 2.75 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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