15th Jul 2015 17:11
LONDON (Alliance News) - REACT Energy PLC said Wednesday that its scheme of arrangement that has been suggested by its examiners has been approved by the High Court in Dublin, which will be followed by its exit from the examinership process, and it has raised GBP1.0 million by way of a secured loan facility.
In May, REACT and its related companies had applied to the High Court in Dublin to seek the appointment of an examiner, with the aim of restructuring the business to create a "sustainable business model" under court protection.
REACT said it had decided to seek examinership after funding discussions with a strategic investor were suspended due to a dispute with the landlord of its Enfield site, difficulties in financing the re-powering of its Newry site, and legal actions taken against it by some creditors.
A scheme of arrangement that was presented by the examiner was approved Tuesday, and as a result the scheme will now become effective as of July 24. The approval of the scheme will result in around EUR5.7 million of debt being removed from its balance sheet, REACT said.
Additionally, REACT said it has raised GBP1.0 million through a secured loan facility, provided by EcoFinance. The facility is at a fixed rate of 15% per year for a five year term and is secured by mortgage debentures, cross guarantees and share pledges over REACT and its subsidiary companies. This facility will be used to secure on-going working capital requirements, the company said.
Shares in the company are currently suspended.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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