Cancellation of Loan with Mayne Management Limited

RNS Number : 4861A

UniVision Engineering Ltd

20 February 2014

 



20 February 2014

UniVision Engineering Limited

("Univision" or the "Group)

Cancellation of loan with Mayne Management Limited

 

Univision, the AIM quoted Hong Kong based designer and installer of digital surveillance and integrated security systems, is pleased to announce that Univision has entered into an agreement with Mayne Management Ltd ("Mayne") whereby Mayne waives all rights to repayment of any and all capital and interest payable under the loan agreement between Mayne and Univision.

Univision owed US$3,948,717.95 to Mayne. This loan was interest bearing but Mayne have already waived their rights to interest on the capital sum.

The agreement to cancel the loan was entered into by both parties in recognition of the efforts of Univision Executive Chairman, Stephen Koo, to further develop Univision. Mr Koo was, from 2001 to 2011, an employee of Mayne and was employed by Mayne as Director of Univision when Univision was under the control of Mayne. Whilst Mayne retain no interest in Univision, its historic involvement in the Company, along with its personal relationship with Mr Koo, has led it to be willing to enter into this Agreement.

Given the retained tax losses of the Company, it is the current opinion of the Board of Univision that there will be no taxation impact on the company as a result of entering into this agreement.

The Chairman of Univision, Stephen Koo commented as follows:

"We are delighted that Mayne have decided to forgive the loan to Univision in its entirety. This will strengthen the Univision balance sheet considerably and will enable us to pursue opportunities without having to factor in the repayment of a large capital sum in our plans. We are in the process of evaluating the impact of this on Univision's current projects and future plans and will update the market as and when we reach any firm conclusions."

For further information visit www.uvel.com or contact:

Univision Engineering Limited	[phone]
Stephen Koo, Chairman
Chun Pan Wong, CEO Nicholas Lyth, Non-Executive Director	[phone]
Zeus Capital Limited (Nominated Adviser and Broker)
Tim Metcalfe John Depasquale	[phone]

 

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