2nd Oct 2014 07:04
LONDON (Alliance News) - Sefton Resources Inc Thursday said it had made a required USD120,000 forebearance payment to its lender, and has got agreement on a delayed payment on the interest and fees owed.
In a statement, Sefton said it had been required to make the USD120,000 payment by September 30, and made the payment on that day, using funds provided by Hawker through a subordinated loan. It said a further USD26,000 to cover interest and fees will be made by Hawker within a week, and its bank has verbally agreed to this delay.
"Hawker and the company are continuing negotiations for financing to replace the bank and complete the Tapia joint venture transaction. A definitive closing date has not yet been determined," Sefton said in a statement.
In July, oil and gas explorer Sefton set up a forbearance agreement with Hawker, in which the subsidiary of Sara Creek Gold Corp would finance its ongoing field operations with the expansion of its previously announced loan to USD1.5 million from USD1.0 million.
The deal followed an announcement in June when Sefton said that its bank agreed to an extension of final repayments until December 28, as long as Sefton made an immediate payment of USD360,000, monthly payments of USD100,000 plus interest at 8% beginning July 31 and payments of legal fees of USD20,000 per month during the forbearance period.
Forebearance is an agreement between a lender and a borrower to delay foreclosure.
By Steve McGrath; [email protected]; @stevemcgrath1
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