Update on discussions between Algo & primary lenders
22 Dec '06
1 min read
Algo Group previously announced that it had entered into an agreement with its primary lenders, whereby such primary lenders agreed to subscribe for securities of Algo in reduction and cancellation of approximately $9.5 million of debt owed to them under Algo's existing credit facilities.
As a condition to the reduction and cancellation of such debt, the agreement also provided that Algo was required to complete a private placement of securities prior to December 15, 2006 for total proceeds of $3 million, such proceeds to be used to repay outstanding amounts under Algo's revolving loan.
The completion of these transactions are subject to certain conditions, including the receipt by Algo of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.
Algo is currently negotiating an extension from its primary lenders in order so that it may have until January 15, 2007 to raise the additional $3 million, and until January 31, 2007 to close the private placement of securities.
Algo will advise of any material developments regarding its negotiations with its primary lenders.