TIDMACR

RNS Number : 5563Q

Abbeycrest PLC

20 October 2011

 
 Press release   20 October 2011

Abbeycrest plc

("Abbeycrest" or the "Group")

Moorgarth Loan Facility Update

On 4 May 2011, Abbeycrest announced revised termination arrangements with the lessor, Moorgarth Property Investments Limited ("Moorgarth"), regarding the leases over Abbeycrest's former head office and car park at Wilmington Grove, Leeds ("the Property").

Under these arrangements, Abbeycrest and Moorgarth agreed to the surrender of the Company's leasehold interests in the Property on 28 September 2011, in consideration for which Abbeycrest entered into a loan facility letter dated 4 May 2011 ("Moorgarth Facility Letter"), secured by way of a third ranking fixed and floating charge over the assets of the Company and its subsidiaries.

The board of Abbeycrest announces that, in light of continuing challenging trading conditions, the Company has in recent weeks been in negotiations with Moorgarth, with a view to agreeing a rescheduling of the repayment profile under the Moorgarth Facility Letter, including the first instalment of GBP311,400 which was due on 28 September 2011.

Moorgarth has, throughout this period, provided the Company with written confirmations temporarily postponing the requirement to repay the first instalment. Following termination of these negotiations yesterday, the Company has informed Moorgarth that it will not now be making the payment of the first instalment on 21 October 2011, being the date on which the latest temporary postponement expires. Under the terms of the intercreditor deed dated 4 May 2011 between Abbeycrest and others, Moorgarth and Burdale Financial Limited ("Burdale"), Moorgarth is unable to take any action to recover the GBP311,400 without the prior written consent of Burdale, which has not been given.

The board confirms that the Group's facilities with Burdale remain available at the date of this announcement and Burdale remains supportive.

For further information, please contact:

 
 Abbeycrest plc                             Tel: +44 (0)113 397 
                                                           0867 
 Simon Ashton, Executive Chairman          www.abbeycrest.co.uk 
 
 Evolution Securities Limited               Tel: +44 (0)113 243 
                                                           1619 
 Joanne Lake/Peter Steel                  www.evosecurities.com 
 
 Rawlings Financial PR Limited             Tel: +44 (0)1653 618 
                                                            016 
 Catriona Valentine/Keeley Clarke   www.rawlingsfinancial.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

END

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