LONDON (Alliance News) - Mar City PLC Monday said two of its directors and an associated company have granted security over a number of shares held in the business to HSBC Bank PLC to secure a personal loan to repay outstanding funds owed to Mar City.
The company said that Tony Ryan and Maggie Ryan, both directors of the company, have granted security over 47.7 million of their Mar City shares to HSBC Bank to secure a GBP10 million personal loan.
In addition, Mar City Developments Ltd, a company owned and controlled by Tony and Maggie Ryan, also has granted security over 3.2 million shares in Mar City PLC as further security to HSBC in connection with the loan, said the company.
In aggregate, just under 50.9 million shares have been pledged to HSBC, and the entire GBP10 million personal loan will be used to repay debt owed by Mar City Developments to Mar City PLC. Of that, GBP6 million is expected to be received by Mar City PLC from Mar City Developments on Tuesday, with the additional GBP4 million to be delivered later this week, it said.
The loan is subject to various covenants from Tony and Maggie Ryan and certain events of default, the breach or occurrence of which will entitle HSBC to sell some or all of the pledged Mar City shares. One such event is if the average market price of the shares falls below 34.0 pence per share for a consecutive period of five business days.
Mar City said Tony and Maggie Ryan continue to hold 43.3% of the company, and Mar City Developments also holds 2.9% interest in Mar City PLC, it said.
Mar City shares closed down 30% at 47.00 pence Monday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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