New loan repayment terms with

RNS Number : 2110Z

Eckoh PLC

17 September 2009

 



17 September 2009

Eckoh plc

('Eckoh' or 'the Group')

Eckoh agrees new loan repayment terms with Redstone plc

Eckoh plc, the UK's largest provider of hosted speech recognition services, announces that it has reached an agreement with Redstone plc to restructure the outstanding loan owed by its subsidiary, Symphony Telecom Holdings Limited ('Symphony'). 

The key terms of the loan payment are as follows:

• GBP 1 million is repayable on 1 October 2011 and the balance of GBP 1.7 million is repayable on 1 October 2012

• Interest is payable monthly in arrears

• Eckoh will be granted security which will be subordinated to Barclays Bank PLC and the holders of the Loan Note

As part of agreeing to restructure the loan, Eckoh will receive an arrangement fee totalling £530K. Of this, £180,000 was paid in July 2009 and a further amount of £125,000 is payable immediately. A final payment of £225,000 is due when full repayment of the loan is made in October 2012. 

Chris Batterham, Chairman of Eckoh said: 'Over recent weeks, the Board have been working closely with Redstone to assist them in their refinancing project which will help secure their financial future and give Eckoh a significantly higher probability that the full outstanding debt will eventually be repaid.

We believe that the substantial arrangement fee together with the renegotiated terms of the agreement compensate Eckoh appropriately for the delay in repayment of the loan.'

Enquiries:

Eckoh plc
Nik Philpot, Chief Executive Officer
Adam Moloney, Group Finance Director
Jim Hennigan, Executive Director
www.eckoh.com	Tel: [phone]
Corfin Communications
Harry Chathli / Victoria Ward	Tel: [phone]
Seymour Pierce
Jonathan Wright	Tel: [phone]

 

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