12 Apr 2012 13:00
12th April 2012
Reconstruction Capital II Limited
("RC2" or the "Company")
Shareholder Loan
RC2 today announces that it has agreed a secured €3 million loan from Northview Investment Fund Ltd (the "Loan"). The Loan will be used to continue to invest in East Point Holdings' subsidiaries, to meet the Company's working capital needs, and to repay loans previously made to the Company.
The terms of the Loan include a 2% arrangement fee and an annual interest rate of 14% if the loan is repaid within six months; if it is not repaid within that period, the interest increases to 16%, and if it is still outstanding after one year, the interest rate increases to 18%. The Loan is secured by means of a pledge against a substantial proportion of the assets held by RC2.
Northview Investment Fund Ltd is a substantial shareholder in the Company. Therefore, the Loan constitutes a Related Party transaction under AIM Rule 13. The Directors of RC2 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