Loan Agreement

6 Mar 2009 13:12



Albany Capital plc

Re: Loan Agreement

On 13 February 2009, Albany Capital plc ("Albany") announced that it had agreed to lend up to £1.75m on a secured short term basis at an interest rate of 18% and draw down fee of 3% to Hermes Financial Group (BVI) Ltd, ("Hermes"). Security is by way of charges in Albany's favour over approximately 5.6 million shares in Sorbic International plc ("Sorbic").

Further to the recent announcement, £1.5m of the loan has now been transferred which will repay a significant proportion of the outstanding debt owed by Hermes to Sorbic. The origins of this transaction arose when Honour Field ("HF"), now a wholly-owned subsidiary of Sorbic, received funds from Albany in July 2008. Prior to its acquisition in September 2008, and in breach of its agreement with Albany, HF transferred £2 million to Hermes. Accordingly, as Sorbic requires the funds to continue its capital project, Albany has made the transfer as the Board of Albany believe such a loan to be in the best interests of both Albany and Sorbic, a company in which Albany has a significant investment.

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