Eatonfield’s equity deadline pushed forward

CHESHIRE developer Eatonfield has said an equity drawdown facility arranged to provide working capital for the cash-strapped group will now run out six weeks sooner than expected.

The AIM-listed Cheshire-based group has taken a further £100,000 against its equity drawdown facility with joint venture partner Jenard Properties Limited for working capital, to be satisfied by the issue of 10 million new ordinary shares at 1p each.

Following this drawdown, the company still has £800,000 available under the facility, to be used at any time until August 31.

However, Eatonfield said the total facility would now only provide the company with enough working capital to last until mid-July, rather than the end of August, because one of its banks had imposed onerous lending terms.

The group gave no update on whether it had agreed standstill agreements with its banks, after breaching loan covenants.

Eatonfield added it was confident that additional equity funding will be made available to the group.

The latest share issue brings Jenard’s shareholding in Eatonfield to 16.23%.