Terms of Note Restructuring Reached in Principle
16 Septembre 2009 - 8:00AM
UK Regulatory
TIDMRDP
RNS Number : 1090Z
Radicle Projects Plc
16 September 2009
RADICLE PROJECTS PLC
("Radicle" or the "Company")
TERMS OF NOTE RESTRUCTURING REACHED IN PRINCIPLE
Radicle (EPIC: RDP.L), the AIM quoted UK company which owns and operates
Australian agribusiness projects, today announces that it has reached an
agreement in principle with holders of the Series A Convertible Note ("Note")
representing more than 75% of the Note holders, to restructure the terms of the
Note.
The terms of the proposed restructuring are conditional upon the Company
securing funding adequate to meet working capital for the farm operating and
other costs. This funding, and that to pay forthcoming Note coupon payments, are
expected to include the disposal of certain of the Company's assets and an issue
of new equity, details of which are expected to be announced shortly.
The restructuring provides for a reduction in the face value of the debt to 60%
of the original GBP15.1 million value of the Notes. The face value will be
escalated back to 100% over the remaining term of the Notes on a monthly basis.
(Notes mature in June 2012).
The coupon interest payment due in December 2009 will be deferred until 30 June
2010.
Going forward, interest will remain payable at 8% per annum on the face value of
the debt.
Cash raised as a result of asset sales by Radicle may be applied to reduce debt
by buying the Notes back at the reduced face value applicable at the time, after
coupon obligations are met.
A Note holder committee will be formed and the Company will provide quarterly
updates on the progress of the Company and the sale of assets to Note holders,
and will be timed to coincide with scheduled board meetings.
Radicle will also provide an opportunity for Note holders to convert to equity
when new funds have been raised by the Company and the conversion strike price
will be adjusted in accordance with the Trust Deed when new funds have been
raised with the price increasing monthly over the life of the Notes.
Chief Executive Tim Bennett commented:
"The revised terms agreed with Note holders give Radicle an attractive
opportunity to rationalize its assets and reduce debt overall, and significantly
improve its cash position going forward.
This is a good result for shareholders, and one which we believe is fair to Note
holders.
Radicle is now working hard to capitalize on the opportunity to reduce debt and
improve cash flows. The creation of project management opportunities in
alliances with third party clients and new partners will continue and is
expected to boost cash flows and reduce investor risk."
A meeting of Note holders will be arranged to finalize the restructure in due
course.
.
=-ENDS--
For further information please contact:
+--------------------------------------------------+-------------------+
| Radicle Projects PLC | 020 7016 5300 |
+--------------------------------------------------+-------------------+
| Tim Bennett | |
+--------------------------------------------------+-------------------+
| | |
+--------------------------------------------------+-------------------+
| Charles Stanley Securities - Nominated Advisor | 020 7149 6000 |
| and Broker | |
+--------------------------------------------------+-------------------+
| Russell Cook / Ben Johnston | |
+--------------------------------------------------+-------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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