Motive Television Plc Share News (MTV)

(ShareCast News) - Struggling technology company Motive Television was continuing its negotiations with holders of convertible loan notes on Tuesday, though announced it had reached agreement with its largest note holder.The AIM-listed firm originally issued £6,585,670 of fixed interest convertible loan notes in October 2010 to fund the acquisition of Motive Television SL.It had a balance of outstanding, unredeemed notes of £2,978,396 which matured on 31 December 2015 (not including the £1,060,244 in notes held by subsidiary Motive Investments Ltd).On Tuesday morning, Motive said it had reached agreement with the largest note holder to acquire £1,393,795 for £100,000 in cash, plus a five year warrant to acquire 5% of the company. Completion of the acquisition was set down for no later than 15 January 2016."The agreement to acquire the notes represents a significant improvement in the company's balance sheet", said Motive Television chairman Michael Pilsworth."With the drive toward near-term profitability based on the company's success in winning new contracts, and success with out technology, the financial restructuring represents a balance sheet reset and hopefully a new beginning for Motive", he added.The acquired notes were to be held by MTV Investments Ltd. Following the acquisition, the total convertible loan notes held by MTV Investments would represent 60.8% of the total outstanding notes, the company said.Motive also said its working capital continued to be tightly managed, and the company was relying on the support of its creditors, staff and directors. Motives directors and senior management were being compensated with a half-cash, half-ordinary shares arrangement until the company reached monthly cash profitability.The company also remained tied up in litigation in the Spanish courts, and was awaiting a decision on whether its case against Hiscan Patrimonio S.A.U. could be heard by the Supreme Court there.If its Supreme Court appeal were to proceed, it would take "four to five years to be heard", the company said.