Atlantic Coal PLC Loan Extension (6266U)
02 January 2013 - 7:37PM
UK Regulatory
TIDMATC
RNS Number : 6266U
Atlantic Coal PLC
02 January 2013
Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining
2 January 2013
Atlantic Coal plc ("Atlantic Coal" or the "Company")
Loan extensions
Atlantic Coal, the AIM-listed anthracite coal mining company
operating in Pennsylvania, USA, announces the extension and
variation of the existing loans between Coal Contractors (1991),
Inc. ("Coal Contractors"), a wholly owned subsidiary of the
Company, and: i) Willoughby (465) Limited ("Willoughby"); and ii)
Mrs MC Best (the "Loan Extensions").
Since 17 October 2007, Coal Contractors has had loans from Mrs
MC Best (the wife of Steve Best, Chief Executive of Atlantic Coal)
and Willoughby (a company controlled by Mrs MC Best). As at 31
December 2012 the total outstanding (being principal and accrued
interest) on the loan from Mrs MC Best was $1,971,466.32 and the
total outstanding (being principal and accrued interest) on the
loan from Willoughby was GBP477,020.73 (together the "Existing
Loans"). Interest on the Existing Loans has been accruing at 9% per
annum. The Existing Loans are currently unsecured and were
repayable in full (together with all accrued interest) on 31
December 2012.
On the terms of two loan extension and variation agreements
entered into on 1 January 2013 between Coal Contractors, Mrs MC
Best and Willoughby respectively, repayment of the Existing Loans
have been extended to 30 April 2013. In consideration of these
repayment extensions, the interest rate on the Existing Loans has
been increased to 15% per annum with effect from 1 January 2013
until the date on which the Existing Loans are repaid in full. The
terms of the Existing Loans otherwise remain unchanged. In addition
Coal Contractors has agreed to repay $221,466.32 of the loan from
Mrs MC Best on 2 January 2013, leaving the outstanding principal
and accrued interest on the loan from Mrs MC Best as
$1,750,000.00.
Related party transaction
As Mrs MC Best is the wife of Steve Best, Chief Executive of the
Company and Willoughby is a company controlled by Mrs MC Best, the
Loan Extensions are related party transactions as defined under
Rule 13 of the AIM Rules for Companies. Accordingly, the Atlantic
Coal Board of Directors (with the exception of Steve Best), being
the independent directors for this purpose, having consulted with
the Company's nominated adviser, Allenby Capital Limited, consider
that the terms of the Loan Extensions are fair and reasonable
insofar as shareholders of Atlantic Coal are concerned.
**ENDS**
For further information on the Company, visit:
www.atlanticcoal.com or contact:
Steve Best Atlantic Coal plc Tel: 020 3328 5670
Nick Naylor Allenby Capital Limited Tel: 020 3328 5656
Mark Connelly Allenby Capital Limited Tel: 020 3328 5656
Alex Price Allenby Capital Limited Tel: 020 3328 5656
Elisabeth Cowell St Brides Media & Finance Tel: 020 7236 1177
Ltd
This information is provided by RNS
The company news service from the London Stock Exchange
END
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