Struggling cake ingredient firm extends loan agreements
Struggling ingredients firm Real Good Food has announced that its investors have agreed to an extension on loan agreements.
The Liverpool firm which has issued a string of profit warnings in the last two years and sold off chunks of its business.
The company also announced accounting issues which led to the departure of a number of senior executives.
This morning the firm issued a stock market statement saying funding arrangements have been extended.
The extensions will “alleviate pressure on the company to source funding” to repay loans.
The statement said: “The company announces today that, following negotiations with the company’s three major shareholders, NB. Ingredients Limited, Omnicane International Investors Limited, and certain funds managed by Downing, it has now finalised an amendment deed (the relating to the funding agreements.
“The agreements have been amended such that the final repayment dates of each of the agreements have been extended to 17 May 2021 with no change to the interest rate payable by the company pursuant to each agreement. As agreed in the amendment deed the agreements will be subject to an additional 7.5 per cent. of principal redemption premium should any of the agreements be repaid after 31 March 2020.
“As Napier Brown and Omnicane are substantial shareholders of the company and Judith MacKenzie, a director of the Company, is also a partner of Downing, the amendment deed is deemed to be a related party transaction pursuant to the AIM Rules for Companies.
“The board considers that by extending the final repayment date of the agreements it substantially alleviates the pressure on the company to source funding in order to repay the agreements the repayment dates of which fall due, in the absence of this latest agreement, on 30 June 2020.
Last month it was announced that Maribeth Keeling would step up to the role of chief finance officer.
Based in Toxteth, the firm employs hundreds of people and exports its products all over the world.
