Funding Update
Released: 13:53 19-Apr-10
Number: 4047K
RNS Number : 4047KCleardebt Group PLC19 April 2010
ClearDebt Group plc ("ClearDebt" or the "Company")
Funding update
On 3 December 2009 ClearDebt announced that it had acquired from the administrator (Jonathan Elman Avery-Gee) part of the businesses and assets of four subsidiaries of Relax Group plc (in administration), namely approximately 6,500 Individual Voluntary Arrangements, Protected Trust Deeds and Debt Management Plans (the "Relax Assets") for £2.7 million. The Company made interim payments totaling £550,000 to the administrator in December 2009 and January 2010.
On 12 February 2010, ClearDebt announced that it had received a loan of £500,000 (the "Loan") from Synergy Capital Limited ("Synergy"). Using the Loan and its own resources, the Company made a further payment of £1 million to the administrator and announced that it would be carrying out a fundraising exercise to repay the Loan and pay the remaining amount outstanding to the administrator within 2 months.
The Company is pleased to announce that it has completed this exercise by way of the issue of up to £2.3 million of fixed rate secured loan notes 2013 ("Loan Notes") in CDG (Guernsey) Limited, a ClearDebt wholly owned subsidiary. Synergy (and new investors for whom Synergy acts as Security Trustee) and David Mond, the Company's Chief Executive, have invested £1.53 million and £500,000 at par respectively into the Loan Notes.
The monies raised from the issue of the Loan Notes will be used to pay the remaining balance due to the administrator of the Relax assets, to repay the Loan from Synergy and to part repay David Mond in respect of a loan made by him to the Company in 2007.
Mr Mond commented: "We are delighted that an entrepreneurial investor like Synergy has demonstrated its continued commitment to the ClearDebt story and has completed a follow-on investment in the Company."
The Company intends to convene a General Meeting prior to 30 June 2010 at which shareholders will be asked to vote, inter alia, on giving the Loan Notes conversion rights into ordinary shares in ClearDebt.
A further announcement will be made in due course.
ENDS
For further information, please contact:
David Mond, CEO
ClearDebt Group plc
Tel: 0161 969 2023
David Shalom, FD
ClearDebt Group plc
John Cowie
Seymour Pierce Limited
Tel: 020 7107 8000
This information is provided by RNSThe company news service from the London Stock ExchangeENDMSCSFSFEUFSSEIL
