17 Sep 2009 07:55
17 September 2009
Eckoh plc
("Eckoh" or "the Group")
Eckoh agrees new loan repayment terms with Redstone plc
Eckoh plc, the UK's largest provider of hosted speech recognition services, announces that it has reached an agreement with Redstone plc to restructure the outstanding loan owed by its subsidiary, Symphony Telecom Holdings Limited ("Symphony").
The key terms of the loan payment are as follows:
GBP 1 million is repayable on 1 October 2011 and the balance of GBP 1.7 million is repayable on 1 October 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 part of agreeing to restructure the loan, Eckoh will receive an arrangement fee totalling £530K. Of this, £180,000 was paid in July 2009 and a further amount of £125,000 is payable immediately. A final payment of £225,000 is due when full repayment of the loan is made in October 2012.
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 their financial 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:
| Eckoh plc | |
| Nik Philpot, Chief Executive Officer | |
| Adam Moloney, Group Finance Director | |
| Jim Hennigan, Executive Director | |
| www.eckoh.com | Tel: 01442 458 300 |
| Corfin Communications | |
| Harry Chathli / Victoria Ward | Tel: 020 7977 0020 |
| Seymour Pierce | |
| Jonathan Wright | Tel: 020 7107 8000 |