Restructuring update and bridge loan facility
11 Giugno 2010 - 2:52PM
UK Regulatory
TIDMDESC
RNS Number : 4898N
Designcapital PLC
11 June 2010
11 June 2010
designcapital plc
("designcapital" or the "Company")
Restructuring update
Bridge loan facility
designcapital, the designer furniture investment company, is pleased to provide
an update on the Company's corporate restructuring process. Further to the
Company's unaudited consolidated results for the six months ended 30 June 2009,
as announced on 30 September 2009, the Company's two French subsidiaries, Forum
Diffusion and Artelano (together, the "French Subsidiaries"), continue to be
subject to an observation period granted by the French court (the "Court") in
August 2009. An important step required to enable the Court to grant the
Company a "plan de continuation", thus allowing the Company to regain control of
the French Subsidiaries, is a demonstration of the Company's immediate ability
to meet the short term working capital requirements of the French Subsidiaries.
As a result, the Company has entered into a bridge loan agreement with Luxadvor
SA ("Luxadvor"), a 36.77 per cent. shareholder of the Company (the "Agreement").
The Agreement is in respect of a short term secured loan of up to EUR785,000 to
the Company for the purpose of satisfying the Court's requirement in relation to
the working capital requirements of the French Subsidiaries (the "Loan"). The
Loan, which will be available until 15 July 2010, accrues interest at a rate of
12 per cent. per annum and any amounts drawn down will be repayable on or before
15 July 2010. The Loan is secured against the French Subsidiaries and Frédéric
Bobo, the Company's Chairman and Chief Executive, has provided a personal
guarantee to Luxadvor in relation to the Loan.
The Company is also close to finalising a transaction which would, if completed,
secure the required long term working capital for the French Subsidiaries and
allow the Company to repay the Loan. The directors of the Company are confident
that this transaction will be completed shortly and will provide an appropriate
update in due course.
As Luxadvor is a substantial shareholder of the Company, the provision of the
Loan is deemed to be a related party transaction under the AIM Rules for
Companies. Accordingly, the independent directors of the Company, being all of
the Company's directors save for David Henderson-Stewart, who is also a director
of Luxadvor, consider, having consulted with Strand Hanson Limited, the
Company's Nominated Adviser, that the terms of the Loan are fair and reasonable
insofar as the Company's shareholders are concerned. In providing its advice,
Strand Hanson Limited has taken into account the independent directors'
commercial assessments.
Enquiries:
designcapital plc
+44 (0) 20 7554 8555
Frederic Bobo
Executive Chairman
Mike Hosie
Chief Financial Officer
Strand Hanson Limited
Angela Peace / Paul Cocker
+44 (0) 20 7409 3494
This information is provided by RNS
The company news service from the London Stock Exchange
END
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