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17 Sep 2009 07:55
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17Β SeptemberΒ 2009
Eckoh plc
("Eckoh"Β or "theΒ Group")
Eckoh agreesΒ new loan repayment terms with Redstone plc
Eckoh plc, theΒ UK's largest provider of hosted speech recognition services,Β announcesΒ thatΒ it hasΒ reached an agreementΒ withΒ Redstone plcΒ to restructureΒ theΒ outstandingΒ loanΒ owed by its subsidiary,Β Symphony Telecom Holdings Limited ("Symphony").Β
The key terms of the loan paymentΒ are as follows:
GBP 1 million is repayable onΒ 1 OctoberΒ 2011 and the balance of GBP 1.7 million is repayable onΒ 1 OctoberΒ 2012
Interest is payable monthly in arrears
Eckoh will be granted security which will be subordinated to Barclays Bank PLC and the holders of the Loan Note
As partΒ of agreeing to restructure the loan,Β Eckoh will receive an arrangement feeΒ totallingΒ Β£530K. Of this,Β Β£180,000 was paidΒ in July 2009Β and a further amount ofΒ Β£125,000Β isΒ payable immediately. A final paymentΒ ofΒ Β£225,000Β is due whenΒ full repayment of the loanΒ is made in October 2012.Β
Chris Batterham, Chairman of Eckoh said: "Over recent weeks, the Board have been working closely with Redstone to assist them in their refinancing project which will help secure theirΒ financialΒ future and give Eckoh a significantly higher probability that the full outstanding debt will eventually be repaid.
We believe that the substantial arrangement fee together with the renegotiated terms of the agreement compensate Eckoh appropriately for the delay in repayment of the loan."
Enquiries:
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Eckoh plc |
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Nik Philpot, Chief Executive OfficerΒ |
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Adam Moloney, Group Finance Director |
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Jim Hennigan, Executive Director |
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www.eckoh.com |
Tel: 01442 458 300 |
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Corfin Communications |
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Harry Chathli /Β Victoria WardΒ |
Tel: 020 7977 0020 |
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Seymour Pierce |
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Jonathan Wright |
Tel: 020 7107 8000 |
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