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LONDON (Alliance News) - Trafalgar New Homes PLC said on Monday Chief Executive Chris Johnson has waived interest due to him on a loan given to the company's subsidiary, Combe Bank Homes Ltd.
On July 17, 2015, the company said its loan from Johnson to the company's subsidiary, which then stood at around GBP2.0 million, had been extended until March 31, 2017. In addition, the company said Johnson agreed to support the company for its "anticipated working capital needs".
Under the terms of the loan, Johnson is entitled to receive interest of 5% per year, payable annually in arrears.
On July 15 2016, Johnson agreed to waive interest due on the loan for the year ended March 31 2016. This would have totalled GBP106,000.
The independent directors of the company considered the waiver of the interest for the year ending March 31 2016 as "reasonable" as far as the company's shareholders were concerned.
The loan will continue to accrue interest for the year ending 31 March 2017. The outstanding balance on the loan is currently GBP2.1 million.
Shares in Trafalgar New Homes were up 0.3% at 1.17 pence Monday morning.
By Lucy Heming; lucyheming@alliancenews.com
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