Abbeycrest announces plan to Refinance facility

16 Jun '06

5 min read

Further to the announcement of Monday 8 May, Abbeycrest plc is pleased to update shareholders on the refinancing of its business and sale & leaseback (“the Disposal”) of its Leeds headquarters.

The company has completed the Disposal of the Group's Leeds headquarters and UK distribution centre to Moorgarth Investments Limited for a gross consideration of £3.3m (£3.1m net of rent bond and costs) payable in cash. The net book value of the property is £2.5m. The proceeds resulting from the sale were used towards repaying the Group's existing facilities with HSBC. The Group has entered into a 15 year lease securing the Group's continuing tenancy at the property. Following a six-month rent free period the company will be paying an initial rental of £350,000 per annum with reviews every five years.

Consequently, in order to meet its ongoing working capital requirements, the company had no option but to pursue the Disposal and Refinancing and had insufficient time to prepare a circular as a result. The Disposal and Refinancing agreements entered into by the Group were subject to a waiver from the UK Listing Authority being granted.

The waiver was granted because the Company met the conditions and gave the following confirmations:

- Negotiation does not allow time for shareholder approval;
- All alternative methods of financing have been exhausted and the only option remaining is the Disposal in accordance with the timetable which does not allow sufficient time to seek shareholder approval;

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