Reconstruction Capital II Ltd Loan to Policolor (6024A)
27 March 2017 - 7:12PM
UK Regulatory
TIDMRC2
RNS Number : 6024A
Reconstruction Capital II Ltd
27 March 2017
27 March 2017
Reconstruction Capital II Limited
Loan to Policolor
Reconstruction Capital II Limited (the "Company") announces that
its subsidiary RC2 (Cyprus) Limited has provided a bridging loan of
up to EUR1.5 million to Policolor S.A. (the "Policolor Loan")
secured by a first rank share pledge over certain shares in its
subsidiary that has an interest in the trading business Orgachim
AD. The Policolor Loan will carry an interest rate of 6% and a six
month term.
Policolor S.A. requires the funds to meet its payment
obligations under a settlement reached with former purchasers of
its main Bucharest site so as to free the site from any encumbrance
and allow the sale of the site to a new party. To fund this loan,
Ion Florescu will loan EUR1.13 million to RC2 (Cyprus) Limited (the
"RC2 Loan") which is also secured by a first rank share pledge over
certain shares in the subsidiary of Policolor S.A. that has an
interest in the trading business Orgachim AD. The RC2 Loan will
have an interest rate of 5% and a six month term. The Policolor
Loan is pro rata to the 40% equity interest held in Policolor S.A.
by RC2 (Cyprus) Limited. Ion Florescu will provide a further loan
of EUR2.2 million at the same terms and conditions directly to
Policolor.
By virtue of the direct and indirect shareholdings held by Ion
Florescu in both the Company and in Policolor S.A., the Policolor
Loan and the RC2 Loan constitute related party transactions
pursuant to Rule 13 of the AIM Rules for Companies. The directors
of the Company, having consulted with the Company's nominated
adviser, Grant Thornton UK LLP, consider that the terms of the
Policolor Loan and the RC2 Loan are fair and reasonable insofar as
the Company's shareholders are concerned.
For further information, please contact:
Reconstruction Capital II Limited
Ion Florescu/Anca Moraru
Tel: +40 21 3167680
Grant Thornton UK LLP (Nominated Adviser)
Philip Secrett/Carolyn Sansom
Tel: +44 (0) 20 7383 5100
Panmure Gordon (UK) Limited (Broker)
Paul Fincham/Jonathan Becher
Tel: +44 (0) 20 7886 2500
This information is provided by RNS
The company news service from the London Stock Exchange
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