Vyke Communications

Discussions on working capita

RNS Number : 2613X
Vyke Communications PLC
02 December 2010
 



2 December 2010

 

Vyke Communications plc

("Vyke" or the "Company")

 

Discussions on working capital facility and

discussions with lenders

 

 

Vyke Communications plc (AIM: VYKE), the mobile Voice over Internet Protocol provider, announces that on 18 November 2010 the Company entered into a three month working capital facility with BLS Telecom LLC ("BLS").  Vyke announces that it is discussion with BLS to extend the repayment date of the US$500,000 discretionary working capital facility by an additional 12 months and the management of Vyke ("Board") is confident that this will be agreed by BLS as part of the discussions set out below.

 

The Board and its advisers are also in discussions with its unsecured bondholder and its unsecured lender in relation to repayments of £1.0 million due on 31 December 2010 (plus accrued interest) and £1.0 million due on 4 January 2011.  By way of background, on 28 June 2007, Vyke entered into a £2.0 million convertible bond.  A payment of £1.0 million (plus accrued interest) is due to be paid in relation to this on 31 December 2010.  On 29 November 2009, Vyke entered into an unsecured convertible loan agreement for £500,000.  A payment of £1.0 million falls due to be paid to settle this unsecured loan on 4 January 2011.  The Board and its advisers are in discussions with the bondholder and the lender with a view to reaching a solution to defer payment of the amounts due. In the event that Vyke is unable to reach agreement with the bondholder and the lender then the Board will need to seek alternative sources of funds of which there can be no guarantee or take steps to protect the interests of creditors. The Board is cautiously optimistic that a solution  will  be found with the bondholder and lender but there is no guarantee of a successful outcome.

 

The Company has taken steps to increase revenues as evidenced by the announcements released on 25 November regarding the launch of the Vyke.com UK website and the iPhone app and today regarding the launch of My Nigeria Mobile. Actions that the Board have taken have already resulted in a significant reduction in costs.  Further announcements in relation to the discussions above will be made in due course.

 

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- For further information please contact: Vyke Communications plc

 

Vyke Communications

Mohammad Asif, Chief Executive

 

 

+44 20 3137 1560



Allenby Capital Limited

+44 20 3328 5656

Nominated Adviser

Brian Stockbridge / Alex Price






Threadneedle Communications

+44 20 7653 9850

Graham Herring / Terry Garrett

 

 

 About VYKE

 

Vyke Communications plc is a mobile Voice over Internet Protocol ("VoIP") provider and is headquartered in the UK.. The strategic goal of Vyke is to combine its expertise in VoIP-based communication systems, mobile data service creation/handset technology and wholesale carrier network management to provide a converged communication solution. Vyke's current set of mobile-oriented products offers up to a 98% discount compared to current typical mobile operator pricing structures.

 

About VYKE MOBILE IP

 

Vyke Mobile IP is the leading mobile-oriented Voice over IP (VoIP) service offering users up to 98% discount compared to typical mobile operator pricing structures. One of the first mass market mobile VoIP services, launched in April of 2006, Vyke Mobile IP features mobile oriented sign-up steps, automatic configuration services and pricing.

 

About the VYKE product suite

 

The Vyke suite of communication products features advanced services providing users with low cost, mobile operator/fixed line provider independent ways of making voice calls and sending text messaging from the mobile phone, PC and internet.

 

Please visit www.vyke.com

 


This information is provided by RNS
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