Related Party Transaction
June 30 2009 - 10:24AM
UK Regulatory
TIDMMDCG
RNS Number : 8308U
Money Debt & Credit Group Plc
30 June 2009
Money Debt & Credit Group PLC ('the Company')
Related Party Transaction
The Board of Money Debt & Credit Group plc today announces that it has entered
into a new loan agreement with Simon Johnson, the Executive Chairman of the
Company and a substantial shareholder. This replaces the previous loan
agreement, details of which were announced on 26 October 2007, which has been
terminated.
Under the terms of the new agreement Simon Johnson has advanced additional
working capital of GBP300,000 to the Company. This has been aggregated with
amounts due to Simon Johnson under the previous agreement, including accrued
interest. The current balance of the loan account is GBP5.45 million. Interest
will be charged at seven per cent per annum above the base rate of National
Westminster Bank plc, subject to a minimum of eight per cent per annum, and an
arrangement fee of GBP154,042 is payable to Simon Johnson by the Company. The
whole of the loan account is unsecured and repayable on demand from 1 January
2010, save that if the Company is successful in obtaining borrowings from a
third party prior to this date an equal amount of the loan account will be
immediately repayable.
To date the Company has been unsuccessful in obtaining additional borrowings
from third parties to fund its working capital requirements and it remains
heavily geared. In the absence of any third party funding Simon Johnson, the
Company's largest shareholder, has undertaken to continue to support the
continued growth of the Company.
The loan by Simon Johnson to the Company is a related party transaction
as defined in the AIM Rules for Companies. The directors, with the exception
of Simon Johnson who is involved in the transaction as a related party,
consider, having taken into account the Company's financial situation and
consulted with the Company's nominated adviser, Smith & Williamson Corporate
Finance Limited, that the terms of the transaction are fair and reasonable
insofar as shareholders are concerned.
Enquiries:
Money Debt & Credit Group PLC
Simon Johnson, Executive Chairman and CEO: Tel: 01923 636 800
Smith & Williamson Corporate Finance Limited
David Abbott: Tel: 0117 376 2213
This information is provided by RNS
The company news service from the London Stock Exchange
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