MDCG Money Debt

 

TIDMMDCG 
 
RNS Number : 8308U 
Money Debt & Credit Group Plc 
30 June 2009 
 

Money Debt & Credit Group PLC ('the Company') 
 
 
Related Party Transaction 
 
 
 
 
The Board of Money Debt & Credit Group plc today announces that it has entered 
into a new loan agreement with Simon Johnson, the Executive Chairman of the 
Company and a substantial shareholder.  This replaces the previous loan 
agreement, details of which were announced on 26 October 2007, which has been 
terminated. 
 
 
Under the terms of the new agreement Simon Johnson has advanced additional 
working capital of GBP300,000 to the Company. This has been aggregated with 
amounts due to Simon Johnson under the previous agreement, including accrued 
interest. The current balance of the loan account is GBP5.45 million. Interest 
will be charged at seven per cent per annum above the base rate of National 
Westminster Bank plc, subject to a minimum of eight per cent per annum, and an 
arrangement fee of GBP154,042 is payable to Simon Johnson by the Company. The 
whole of the loan account is unsecured and repayable on demand from 1 January 
2010, save that if the Company is successful in obtaining borrowings from a 
third party prior to this date an equal amount of the loan account will be 
immediately repayable. 
 
 
To date the Company has been unsuccessful in obtaining additional borrowings 
from third parties to fund its working capital requirements and it remains 
heavily geared. In the absence of any third party funding Simon Johnson, the 
Company's largest shareholder, has undertaken to continue to support the 
continued growth of the Company. 
 
 
The loan by Simon Johnson to the Company is a related party transaction 
as defined in the AIM Rules for Companies. The directors, with the exception 
of Simon Johnson who is involved in the transaction as a related party, 
consider, having taken into account the Company's financial situation and 
consulted with the Company's nominated adviser, Smith & Williamson Corporate 
Finance Limited, that the terms of the transaction are fair and reasonable 
insofar as shareholders are concerned. 
 
 
 
 
Enquiries: 
 
 
Money Debt & Credit Group PLC 
Simon Johnson, Executive Chairman and CEO: Tel: 01923 636 800 
 
 
Smith & Williamson Corporate Finance Limited 
David Abbott: Tel: 0117 376 2213 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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