6th Mar 2009 13:12
Albany Capital plc
Re: Loan Agreement
On 13 February 2009, Albany Capital plc ("Albany") announced that it had agreed to lend up to £1.75m on a secured short term basis at an interest rate of 18% and draw down fee of 3% to Hermes Financial Group (BVI) Ltd, ("Hermes"). Security is by way of charges in Albany's favour over approximately 5.6 million shares in Sorbic International plc ("Sorbic").
Further to the recent announcement, £1.5m of the loan has now been transferred which will repay a significant proportion of the outstanding debt owed by Hermes to Sorbic. The origins of this transaction arose when Honour Field ("HF"), now a wholly-owned subsidiary of Sorbic, received funds from Albany in July 2008. Prior to its acquisition in September 2008, and in breach of its agreement with Albany, HF transferred £2 million to Hermes. Accordingly, as Sorbic requires the funds to continue its capital project, Albany has made the transfer as the Board of Albany believe such a loan to be in the best interests of both Albany and Sorbic, a company in which Albany has a significant investment.
Enquiries:
|
John McLean, Chairman, Albany Capital |
+44 (0)203 178 4506 |
|
James Joyce, WH Ireland |
+44 (0) 207 220 1698 |
|
John Bick, Hansard Group |
+44 (0) 7872 061007 |
Related Shares:
ALB.LSorbic International