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Forever Broadcast (FOB)

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Friday 20 September, 2002

Forever Broadcast

Notice of EGM

Forever Broadcasting PLC
20 September 2002

Forever Broadcasting plc ('Forever' or the 'Company')

20 September 2002

Related Party Loans and Notice of Extraordinary General Meeting

Summary

•       The Company is pleased to announce that it intends to enter into Loan
Agreements with the Executive Directors and certain founder shareholders which,
in aggregate, amount to £900,000.  The Directors believe that the Loans together
with existing bank facilities will provide the Company with sufficient cash
resources for the foreseeable future.

•       As a result of the related party nature of the Loan Agreements the
Independent Directors believe it appropriate to seek Shareholder approval.

•       To effect this, the Company has today issued a notice of an
Extraordinary General Meeting to be held at 12:00 noon on Monday 14 October 2002
at the Old Assembly Rooms, Fenkle Street, Newcastle-upon-Tyne, NE1 5XU, at which
the Executive Directors offer themselves for re-election.

•       The Company is reviewing its strategic options in conjunction with its
nominated adviser Robert W. Baird.

Introduction

Further to the announcement on 14 August 2002, that the Executive Directors and
certain founder shareholders had committed to provide new equity and loans
totalling £900,000, Forever today announced that it intends to enter into two
loan agreements.

A circular (the 'Circular') will be sent to Shareholders today convening an
extraordinary general meeting to consider resolutions to approve inter alia an
Initial Loan of £400,000 and a Subsequent Loan of £500,000.

Under the terms of the Loan Agreements, which are summarised below, the Lenders
have agreed to lend the Company £900,000 in aggregate.   The Initial Loan of
£400,000 will be made available unconditionally and will be drawn down on 30
September 2002.  A resolution will be proposed at the EGM to approve the Initial
Loan agreement.  The Subsequent Loan of £500,000 will be made available subject
to the approval by Shareholders of the Subsequent Loan agreement and the
approval by Shareholders of resolutions re-electing the Executive Directors.

The Company is not obliged by any legal or regulatory requirement to convene the
EGM to have the Loan Agreements approved by Shareholders.  However, as the
Lenders comprise related parties including all of the Executive Directors of the
Company, the Independent Directors believe it is appropriate to seek the
approval of Shareholders to the Resolutions.

Background to and Reasons for the Related Party Loans

In a trading update published on 14 August 2002, the Company announced that the
Lenders had committed to provide new equity and loans to the Company totalling
£900,000 which, when aggregated with bank facilities, would in the Board's
opinion provide the Group with sufficient cash resources for the foreseeable
future.

In light of the extent to which existing shareholdings would be diluted by an
issue of further shares at the current market price, the differential between
the market price and nominal value of the Company's shares and ahead of the
completion of the forthcoming strategic review referred to below, the Board
believes it is inappropriate for any of the above commitment to be satisfied by
way of subscription for new shares.  Instead, the Board considers that the
provision of loans to the Company on the terms of the Loan Agreements (which,
subject to the approval of the Subsequent Loan agreement, total £900,000) is
appropriate.  The continuation of the Company's current bank overdraft facility
of £3,500,000 is conditional upon the injection of £900,000.

If the resolutions proposing the re-election of each of the Executive Directors
are not approved, the resolution seeking the approval of the Subsequent Loan
agreement will be withdrawn and consequently the Subsequent Loan of £500,000
will cease to be available.  In that event, the conditions necessary to ensure
the continuation of the current bank overdraft facility of £3,500,000 will not
have been satisfied and as a result the Company will need to seek alternative
sources of financing.

If the resolutions proposing the re-election of each of the Executive Directors
and the resolution proposing the Subsequent Loan agreement are approved, and the
Subsequent Loan of £500,000 is drawn down, the Board remains of the opinion that
taking into account the continuation of existing bank facilities, the Group will
then have sufficient cash resources for the foreseeable future.

Summary of the Loan Agreements

The Loan Agreements contain inter alia the following provisions:

(a)  The Initial Loan will be made available to the Company as follows:
                                                                                          £
J I Josephs                                                                                335,000
E A Lawrence                                                                                65,000
                                                                                           400,000



The Subsequent Loan will be made available to the Company as follows:
                                                                                          £
J I Josephs                                                                                148,334
E A Lawrence                                                                               166,666
S J King                                                                                     5,000
G H Dunne                                                                                    5,000
M J Dobson                                                                                 100,000
Mrs. K Robinson                                                                             75,000
                                                                                           500,000


(b)  The amount of the Loans outstanding from time to time will bear interest at
a rate of 1.5% plus the base lending rate of HSBC Bank plc from time to time.

The Company's existing bank facilities bear interest at a rate of 1.75% plus the
base lending rate of HSBC Bank plc from time to time.

(c)  The Initial Loan will be drawn down by the Company on 30 September 2002.

(d)  Irrespective of whether or not the Initial Loan agreement is approved the
Initial Loan will be repayable upon the earlier of:

(i)     30 September 2003; or
(ii)    such sum being refinanced; or
(iii)    a takeover offer in respect of the Company becoming or being declared
unconditional in all respects.

(e)  The Subsequent Loan will be drawn down by the Company immediately following
the EGM, subject to the resolutions proposing the re-election of the Executive
Directors and the Subsequent Loan agreement being approved.

(f)   Subject to paragraph (g) below, if the resolutions proposing the
re-election of the Executive Directors and the Subsequent Loan agreement are
approved, the Subsequent Loan will be repayable upon the earlier of:

(i)     30 September 2003; or
(ii)    such sum being refinanced; or
(iii)    a takeover offer in respect of the Company becoming or being declared
unconditional in all respects; or
(iv)   John Josephs and/or Eric Lawrence ceasing (for whatever reason) to be
directors or employees of the Company.

(g)  The Loans are immediately repayable upon the occurrence of specified
events, including:

(i)    a default by the Company or the Specified Subsidiaries under the terms of
the Loan Agreements;

(ii)    any other borrowings of the Company or a subsidiary becoming payable
(other than in the normal course); and

(iii)   the Company or any subsidiary going into liquidation (either compulsory
or voluntary) or a receiver being appointed in respect of the whole or any part
of the assets of the Company or a subsidiary or if any of them is the subject of
some other insolvency event.

(h)  The Company's obligations under the Loan Agreements are to be guaranteed by
the Specified Subsidiaries.

The Company and each of the Specified Subsidiaries is to provide security in the
form of debentures incorporating fixed and floating charges over all of the
assets of each of those companies.  The debentures are to be granted in favour
of the Agent as trustee for the Lenders.  Each of the debentures is to rank, in
priority, behind those granted by the relevant companies to HSBC Bank plc to
secure all Group borrowings from that bank.

(i)All expenses incurred by the Lenders in connection with the negotiation and
preparation of the Loan Agreements and related documents and other specified
matters relating to the Loans are to be borne by the Company.

Strategic Review

As a result of the substantial changes in market conditions since the time of
the flotation, the Board is reviewing the strategic options available to the
Company in conjunction with its nominated adviser, Robert W. Baird.

Extraordinary General Meeting

A notice convening an Extraordinary General Meeting to be held at 12.00 noon on
Monday, 14 October 2002 at the Old Assembly Rooms, Fenkle Street,
Newcastle-upon-Tyne, NE1 5XU is set out at the end of the Circular. At this
meeting, Shareholders will be asked to consider the Resolutions set out in the
Notice.

Recommendation

The Loan Agreements have been considered by the Independent Directors who, after
having consulted with the Company's nominated adviser Robert W. Baird, believe
the terms of the Loans to be fair and reasonable as far as Shareholders as a
whole are concerned.

Accordingly, the Independent Directors believe that the approval of the
Resolutions is in the best interests of the Company and its Shareholders as a
whole and accordingly, unanimously recommend Shareholders to vote in favour of
each of the Resolutions at the EGM, as they intend to do in respect of their own
beneficial shareholdings, being in aggregate 160,000 Ordinary Shares
(representing 0.74 per cent. of the issued Ordinary Shares as at the date of
this document).

Copies of the Circular

Copies of the Circular will be available for inspection at the offices of Robert
W. Baird at Mint House, 77 Mansell Street, London, E1 8AF during normal business
hours and on any weekday (Saturdays and public holidays excepted) from the date
of this announcement until and including 20 October 2002.

DEFINITIONS

'Agent'                       the nominated agent of the Lenders

'Robert W. Baird'             Robert W. Baird Limited, which is regulated by the Financial Services
                              Authority and is a member of the London Stock Exchange

'Circular'                    the Circular to be sent to Shareholders convening the EGM

'Company' or 'Forever'        Forever Broadcasting plc

'Directors' or 'Board'        the directors of the Company

'Executive Directors'         J I Josephs, E A Lawrence, S J King, G H Dunne who are involved in the day to
                              day management of the Company

'Extraordinary General        the Extraordinary General Meeting of the Company convened for 12:00 noon on
Meeting' or 'EGM'             Monday, 14 October 2002, notice of which is set in the circular

'Form of Proxy'               the Form of Proxy accompanying this document for use by Shareholders in
                              connection with the EGM

'Group'                       the Company and its subsidiaries

'Independent Directors'       D P Cassidy and J N B Whitney the non-executive directors who are not
                              involved in the related party loans

'Initial Loan'                the loan of £400,000 on the terms specified in the Summary of the Loan
                              Agreements between the Company, and J I Josephs and E A Lawrence

'Lenders'                     those persons contributing to the Loans specified in the Summary of the Loan
                              Agreements set out on page  4 of this document

'Loans'                       together the Initial Loan and Subsequent Loan

'Loan Agreements'             together the Initial Loan agreement and Subsequent Loan agreement

'Notice'                      the notice of the EGM set out in the Circular

'Ordinary Shares' or 'Shares' ordinary shares of 50p each in the capital of the Company

'Resolutions'                 the resolutions be proposed at the EGM and set out in the Notice

'Shareholders'                holders of Ordinary Shares

'Specified Subsidiaries'      Perfecttaste Limited, Brighton & Hove Local Radio Limited, Wolverhampton Area
                              Radio Limited and Grand Central Broadcasting Limited (each of which is a
                              wholly owned subsidiary of the Company)

'Subsequent Loan'             the loan of £500,000 proposed to be made on the terms of a loan agreement,
                              the principal terms of which are specified in the Summary of the Loan
                              Agreements in this document, and between the Company, and J I Josephs, E A
                              Lawrence, S J King, G H Dunne, M J Dobson and Mrs. K Robinson






Enquiries:

John Josephs, Chairman
Forever Broadcasting PLC                              Tel: 0191 286 0000
Peter Watson
Robert W. Baird Ltd.                                  Tel: 020 7488 1212




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