26th Aug 2005 18:11
Parallel Media Group PLC26 August 2005 Parallel Media Group plc Restructuring of associate The Board of Parallel Media Group plc ("PMG") announces the restructuring of itsshareholding in its associated company Parallel Media Asia (2003) Limited ("PMA"), the largest promoter of professional golf tournaments in Asia. The proposed restructuring will see the introduction of a new investor, AccurateGain Profits Limited ("AGPL") through a subscription for a convertible loan ofUS$750,000 into PMA with convertible rights equal to 20% of the equity in PMA.AGPL also has the option to acquire a further 5% of PMA for US$187,500. On fullconversion of the loans into shares, PMG's and Tibbles Participation Corp's(PMG's partner in PMA) shareholdings in PMA will reduce to 37.5% each. As part of the restructuring, PMA is in negotiation for a borrowing facility ofUS$1,500,000. As a further part of the restructuring, the existing US$4,549,000 inter companyloan between PMG and PMA will be settled in the following manner: • through the capitalization by PMG of US$500,000 of the inter company loan for share capital in PMA to match an equivalent amount of cash injection by Tibbles Participation Corp; • PMA will assume the debt of US$3,000,000 currently owing by PMG to Bumiputra - Commerce Bank, in consideration for which PMG will waive a further amount of US$450,000 of the inter company loan; • the remaining balance of US$599,000 will be repaid by 15 January 2006 by PMA to PMG on an agreed payment schedule. The above restructuring will raise additional working capital for PMA to developtheir golf business in the fast growing Asian market place. It will also settlethe existing inter-company debt between PMG and PMA. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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