By Anthony O. Goriainoff

 

IDE Group Holdings PLC said Tuesday that it has begun exploratory talks with MXC Capital Ltd., with the aim of converting its loan notes to equity, after a one million pound ($1.3 million) loan wasn't repaid.

The U.K. provider of network, cloud and information-technology managed services said the short-term loan and its interest had to be repaid by March 31. As it wasn't, the loan has reverted to the same terms of one agreed upon in January 2019, the company said.

On Jan. 10, 2019, the company said it would raise GBP10 million via the issue of secured loan notes and an open offer and use the funds to repay a debt of GBP8.3 million with National Westminster Bank PLC, as well as additional working capital. The company said then that the secured loan notes had a six-year term and an annual coupon of 12%, an arrangement fee of 2.5% and an exit fee of 2.5%, both payable at the end of term. It said then that the loan notes were secured on the company's assets.

The company said Tuesday that its potential indebtedness via loan notes once matured was now GBP25.9 million, and that all loan notes remained covenant-free.

Shares at 0745 GMT were flat at 1.20 pence.

 

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

 

(END) Dow Jones Newswires

April 19, 2022 04:27 ET (08:27 GMT)

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