RNS Number : 6536A
Metalrax Group PLC
13 October 2009
13
October
2009
Metalrax Group PLC ("Metalrax"
or the "Company"
)
Refinancing
and Directorate Change
Metalrax is
pleased
to announce the completion of the refinancing of its bank borrowings. Under the terms of this refinancing, Metalrax has
agreed
facilities
of
up to £2
3.
7
m with HSBC Bank Plc and The Royal Bank of Scotland Plc
. These new facilities will expire in
three years
'
time
.
This refinancing package comprises the following
:
-
£11.
9
m committed loan secured against Metalrax propert
ies
;
-
£10.8m facility provided by means of
invoice d
iscounting and
an overdraft
; and
-
£1m of sterling corporate facilities
.
As
part
of this refinancing Metalrax has granted an equity warrant instrument to
be
issued in favour of
HSBC Bank Plc and The Royal Bank of Scotland Plc
for
, in aggregate,
4.99% of
the
issued share capital
at the time of exercise
, with an exercise price of
5
pence
per share.
In securing
these
banking facilities, the Board believe
s
that
it has
obtained the necessary funding to enable the Group to continue as a going concern. The banking deal removes the risk of a material uncertainty as reported in the recent Interim announcement on 29 September 2009.
As a condition to Metalrax
Group
Pension Trustee
s
Limited
supporting
the refinancing, Metalrax has provided security in
its
favour as trustee of the Metalrax Group
Plc
Pension and Life Assurance Plan.
J
ohn Crabtree, Chairman of Metalrax
,
commented:
"
The completion of the refinancing puts
Metalrax
on a strong footing for the future. This year's trading has been difficult
,
reflecting the general economic climate. However we have made good progress in our strategy to refocus the
Company
and now, with the support of our banks, we can continue the turnaround.
"
Following the successful completion of the refinancing,
Metalrax also announces that Michael Stock, Group Finance Director
and Company Secretary
,
will be
leaving the Company
on 31
October 2009
a
s part of
the
restructuring
of
central overheads
.
Michael will not be replaced
and his responsibilities will be assumed by
Group Financial Controller, Nick Longley
A
CA
,
and
Director of
Finance - Operations, Ian Flavell FCMA
.
Andrew Richardson, Chief Executive Officer of Metalrax
,
said:
"Michael has
successfully
led
the
completion of this major refinancing
,
the restructuring of the Group's financial processes
as well as building a capable finance
team
. I would like to thank him for his
excellent
contribution and wish him all the best for the future"
.
For further information:
|
Metalrax Group PLC
|
|
|
Andrew Richardson
, Chief Executive
|
0121 433
8961
|
|
|
|
|
Arden
Partners
|
|
|
Steve Douglas
|
0121 423 8900
|
|
|
|
|
Hogarth Partnership
|
|
|
Andrew Jaques
|
020 7357 9477
|
|
Rachel Hirst
|
|
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEAFEAFDFNFAE