25th Mar 2009 07:00
Turbo Power Systems Inc. ("the Company")
Loan Note Update
On the 19th June 2008, the Company issued £3 million of loan notes ("Loan Notes"), the terms of which were amended on the 15th August 2008. Under the amended terms, if at any point during the time the Loan Notes are in issue the unrestricted cash balance of the Company falls below a threshold of £750,000, the Loan Notes are repayable on demand at the request of the majority of the Loan Note holders.
The Company is pleased to announce that it has agreed with the Loan Note holders that, for a three month period commencing the 25th March 2009, the above threshold will be reduced to £300,000. The Company does not anticipate that unrestricted cash balances will fall below this level during this three month period.
This short term increase in available cash will help the Company to take advantage of existing growth opportunities, whilst providing additional working capital headroom. The Company anticipates that it will be able to operate above the original threshold thereafter.
Paul Summers, CEO, said "Our markets are bearing up well in the current climate and are still providing the business with good growth opportunities. Cash flow is a key focus of the management team and we expect the Company to continue to build on the successes of the past year and to continue to develop its order book."
Enquiries:
Paul Summers / Richard Bayliss, Tel: 020 8564 4460
Turbo Power Systems Inc.
Oliver Scott / Nicholas Marren Tel: 020 7418 8900
KBC Peel Hunt
Related Shares:
TPS.L