Bglobal to defer repayment of £1m loan
ENERGY services company Bglobal says it has negotiated new terms on a £1m convertible loan due to have been repaid on Monday.
The Blackburn-based AIM company also said it was making progress in its planned sale of its metering business and is in “advanced discussions” with several parties.
The company took the loan from Synergy Capital – which has since been placed in liquidation – in February 2009. It still owes £950,000 plus interest.
A deal has been agreed with the lender’s liquidators to defer repayment of the loan.
Bglobal will pay £250,000 today and then make four monthly installments of £50,000 from March, and then repay the outstanding balance of the in full on July 11.
Interest on the outstanding balance of the loan from February 11 2014 will run at 10% per annum (previously 8%) with such interest being payable on a quarterly basis in arrears. The Loan is convertible at Synergy’s option at any time up to and including July 11 this year into fully paid ordinary shares in the Company at a conversion price of 17p per ordinary share.
Tim Jackson-Smith, chief executive said: “We are delighted to have agreed a deferral of the loan as this gives the group a significant boost to its cash flow.
“We are currently making good progress on the sale of our Metering business and are in detailed and advanced discussions with a number of interested parties, which we will update shareholders on in due course.”
