TIDMATC

RNS Number : 7369D

Atlantic Coal PLC

01 May 2013

Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining

1 May 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 (a company controlled by Mrs MC Best, the wife of Steve Best, Chief Executive of Atlantic Coal) ("Willoughby"); and ii) Mrs MC Best (the "Loans").

As announced on 2 January 2013, the repayment date of the Loans was previously extended to 30 April 2013. At the same time, in consideration of the repayment extensions the interest rate on the Loans was increased to 15% per annum with effect from 1 January 2013. Further detail on these changes is contained in the Company's announcement on 2 January 2013.

Coal Contractors, Mrs MC Best and Willoughby have now agreed to two further loan extension and variation agreements which were entered into on 30 April 2013. Under these agreements the repayment terms of the Loans have been varied so that these are to be repaid in 48 monthly instalments commencing on 15 May 2013. In addition, the parties have agreed that no principal is to be repaid for the first five months (although interest is still to be paid) with the sums otherwise due being repaid in months six, seven and eight. Thereafter, the then remaining principal will be paid in equal monthly instalments together with the applicable interest. In the event that Atlantic Coal fails to make any repayments due under the Loans then Mrs MC Best and Willoughby have the right to require Atlantic Coal to grant them a first ranking fixed and floating charge over its entire assets and undertaking.

The parties have also agreed that the interest rate under the Loans will be reduced to 10% per annum with effect from 1 May 2013. The loan to Willoughby is also now denominated in US dollars (previously in Sterling).

Save for as set out in this announcement, the terms of the Loans otherwise remain unchanged.

As at 30 April 2013 the total outstanding (being principal and accrued interest) on the loan from Mrs MC Best was $1,838,320.31 and the total outstanding (being principal and accrued interest) on the loan from Willoughby was $776,532.50. Interest on the Loans has been accruing at 15% per annum since 1 January 2013.

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 extension and variations are related party transactions as defined under Rule 13 of the AIM Rules for Companies. Accordingly, the directors of Atlantic Coal, with the exception of Steve Best, having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the terms of the loan extension and variation 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 
 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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