8 Dec 2011 09:12
8 December 2011
Reconstruction Capital II Limited
("RC2" or the "Company")
Director's Loan
In order to help fund the working capital needs of East Point Holdings Limited ("EPH"), an investee company of RC2, Howard Golden, persons connected to Dirk Van den Broeck, and Franklin P. Johnson, who are directors of RC2, have made a €0.75million unsecured loan to RC2 (the "Loan"). The Loan, which is denominated in US dollars, is necessary because RC2 is fully invested and is currently selling down its investments held under the Trading Programme to meet its own working capital needs. The terms of the Loan include a 2% arrangement fee and an annual interest rate of 12% if the loan is repaid within six months; if it is not repaid within that period, then after six months the interest increases to 16%, and if it is still outstanding after one year, the interest rate increases to 20%.
The Loan constitutes a Related Party transaction under AIM Rule 13. The directors of RC2 who did not participate in the provision of the Loan consider, after consultation with the Company's Nominated Adviser, that the terms of the Loan are fair and reasonable in so far as its shareholders are concerned.
For further information, please contact:
Reconstruction Capital II Limited
Ion Florescu / Anca Moraru
Tel: +44 (0) 207 244 0088/ +40 21 3167680
Grant Thornton Corporate Finance (Nominated Adviser)
Philip Secrett / David Hignell
Tel: +44 (0) 20 7383 5100
LCF Edmond de Rothschild Securities (Broker)
Hiroshi Funaki
Tel: +44 (0) 20 7845 5960