14 Feb 2014 09:13
14 February 2014
Formation Group Plc
Part Payment of Whitechapel Development Profit Share
and Partial Repayment of Working Capital Loan
Formation Group plc (AIM: FRM) ("Formation" or the "Company") is pleased to announce that proceeds of £501,000.00 from the profits due to Formation arising from its profit sharing agreement in the residential and commercial development at 52-58 Commercial Road, London E1 1LP ("Whitechapel") has been received. These proceeds were utilised to reduce its working capital loan with the Kennedy Family Discretionary Settlement (the "Lender") in accordance with the arrangements previously announced on the 5th June, 2013 and 29th August, 2013.
Following the repayment, the outstanding balance on the loan was £97,842.42.The interest payable on the loan is 10 per cent. per annum and as security for the loan, Formation granted the Lender a registered charge over its share of the net profit due to Formation arising from the residential and commercial development at Whitechapel.
Contact details:
Formation Group PLC - David Kennedy; Chief Executive Officer - 020 7920 7590
NOMAD to Formation Group PLC;
Zeus Capital Limited - Ross Andrews / Andrew Jones - 0161 831 1512