Business
Strategic Review
Strategic Review.
About this update from Restore Plc
[{"type":"text","content":"\n RNS Number : 2243N Mavinwood PLC 12 February 2009 \n \n12 February 2009 \n\nMavinwood plc\n\nStrategic review and funding arrangements\n\nMavinwood is exploring a number of strategic initiatives to strengthen its financial position, including consideration of the disposal of certain assets. In order to secure the ongoing support of its banks through this period, Mavinwood has entered into an agreement with its largest shareholder, Geraldton Services Inc. ('Geraldton'), to provide additional equity to the Company. In the event that the Company is not in compliance with its bank covenants as at 30 June 2009, Geraldton will underwrite an equity issue to raise up to £10 million. It is anticipated that any such equity issue, if made, would be made available to all shareholders on a pro-rata basis. \n\nIn addition, Geraldton has agreed to make available to the Company a short-term loan facility of £2.5 million which, if drawn down, would bear interest at 10 per cent. per annum and would be repayable on 30 June 2009.\n\nA cash fee of £750,000 will be payable to Geraldton on 1 July 2009 in connection with these commitments whether or not they are called upon by the Company. With regard to the banks Mavinwood will pay a fee of up to £165,000 and an additional margin of up to 1.5 per cent..\n\nGeraldton is a related party (as defined in the AIM Rules for Companies). The Board considers, having consulted with its nominated adviser, that the terms of each of these transactions are fair and reasonable insofar as its shareholders are concerned. \n\nEnquiries\n\n\n\n\n\nMavinwood plc\n\n\n\n\n\n\n\nKevin Mahoney\n\n\n020 7661 9650\n\n\n\n\nMike Vincent\n\n\n020 7661 9651\n\n\n\n\n\n\n\n\n\n\n\n\nThreadneedle Communications\n\n\n\n\n\n\n\nJohn Coles\n\n\n020 7653 9848\n\n\n\n\n\n\n\n\n\n\n\n\nCollins Stewart Europe Limited\n\n\n\n\n\n\n\nAdrian Hadden/Adam Cowen\n\n\n020 7523 8350\n\n\n\n\n\n\n\nThis information is provided by RNSThe company news service from the London Stock Exchange END MSCEAFAAFFNNEFE \n ","length":4746,"tagName":"div"}]