DESC Designcapital

 

TIDMDESC 
 
RNS Number : 4898N 
Designcapital PLC 
11 June 2010 
 

                                                                    11 June 2010 
                                designcapital plc 
                       ("designcapital" or the "Company") 
                              Restructuring update 
                              Bridge loan facility 
 
designcapital, the designer furniture investment company, is pleased to provide 
an update on the Company's corporate restructuring process.  Further to the 
Company's unaudited consolidated results for the six months ended 30 June 2009, 
as announced on 30 September 2009, the Company's two French subsidiaries, Forum 
Diffusion and Artelano (together, the "French Subsidiaries"), continue to be 
subject to an observation period granted by the French court (the "Court") in 
August 2009.  An important step required to enable the Court to grant the 
Company a "plan de continuation", thus allowing the Company to regain control of 
the French Subsidiaries, is a demonstration of the Company's immediate ability 
to meet the short term working capital requirements of the French Subsidiaries. 
As a result, the Company has entered into a bridge loan agreement with Luxadvor 
SA ("Luxadvor"), a 36.77 per cent. shareholder of the Company (the "Agreement"). 
 The Agreement is in respect of a short term secured loan of up to EUR785,000 to 
the Company for the purpose of satisfying the Court's requirement in relation to 
the working capital requirements of the French Subsidiaries (the "Loan").  The 
Loan, which will be available until 15 July 2010, accrues interest at a rate of 
12 per cent. per annum and any amounts drawn down will be repayable on or before 
15 July 2010.  The Loan is secured against the French Subsidiaries and Frédéric 
Bobo, the Company's Chairman and Chief Executive, has provided a personal 
guarantee to Luxadvor in relation to the Loan. 
The Company is also close to finalising a transaction which would, if completed, 
secure the required long term working capital for the French Subsidiaries and 
allow the Company to repay the Loan.  The directors of the Company are confident 
that this transaction will be completed shortly and will provide an appropriate 
update in due course. 
As Luxadvor is a substantial shareholder of the Company, the provision of the 
Loan is deemed to be a related party transaction under the AIM Rules for 
Companies. Accordingly, the independent directors of the Company, being all of 
the Company's directors save for David Henderson-Stewart, who is also a director 
of Luxadvor, consider, having consulted with Strand Hanson Limited, the 
Company's Nominated Adviser, that the terms of the Loan are fair and reasonable 
insofar as the Company's shareholders are concerned.  In providing its advice, 
Strand Hanson Limited has taken into account the independent directors' 
commercial assessments. 
Enquiries: 
designcapital plc 
+44 (0) 20 7554 8555 
 
Frederic Bobo 
Executive Chairman 
 
Mike Hosie 
Chief Financial Officer 
 
Strand Hanson Limited 
Angela Peace / Paul Cocker 
+44 (0) 20 7409 3494 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCKKDDPBBKDKAD 
 

Designcapital (LSE:DESC)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024

Designcapital (LSE:DESC)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024