Director loan

RNS Number : 4197Z

Trafalgar Property Group PLC

31 August 2018

 

31 August 2018

Trafalgar Property Group plc

(the "Company")

Director loan

Trafalgar Property Group plc (AIM: TRAF), the AIM quoted residential and assisted living property developer, today provides an update on its director loan from Chris Johnson, Chief Executive, to the Company's subsidiary, Trafalgar New Homes Limited (the "TNH Loan").

The TNH Loan was entered into on 27 June 2013 for working capital purposes. Under the terms of the TNH Loan, Mr Johnson is entitled to receive interest of 5% per annum, payable annually in arrears and Mr Johnson has agreed the interest charge would only apply on amounts drawn up to £2 million.  The outstanding balance on the TNH Loan currently stands at £2,170,657 and was repayable by 31 August 2018.

Mr Johnson has today agreed to extend the repayment date of the TNH Loan to 30 September 2019 and waive the interest payments due for the financial years ended 31 March 2018 and 31 March 2019, which would have totalled £200,000.

TNH will make repayments or drawings on the TNH Loan periodically, depending on its working capital requirements and Mr Johnson has confirmed he will continue to support the Company's working capital requirements as needed.

These amendments to the TNH Loan are a related party transaction under the AIM Rules for Companies.  Accordingly, the independent directors of the Company consider, having consulted with Allenby Capital Limited, the Company's Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned. 

Enquiries:

Trafalgar Property Group plc Christopher Johnson	[phone]
Allenby Capital Ltd - Nominated Adviser and Broker Jeremy Porter/James Reeve	[phone]
Yellow Jersey PR Limited Charles Goodwin / Abena Affum	[phone]

 

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