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Albany Capital PLC (ALB)

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Friday 06 March, 2009

Albany Capital PLC

Loan Agreement

RNS Number : 4657O
Albany Capital PLC
06 March 2009
 



Albany Capital plc


Re: Loan Agreement


On 13 February 2009, Albany Capital plc ('Albany') announced that it had agreed to lend up to £1.75m on a secured short term basis at an interest rate of 18% and draw down fee of 3% to Hermes Financial Group (BVI) Ltd, ('Hermes'). Security is by way of charges in Albany's favour over approximately 5.6 million shares in Sorbic International plc ('Sorbic').


Further to the recent announcement, £1.5m of the loan has now been transferred which will repay a significant proportion of the outstanding debt owed by Hermes to Sorbic. The origins of this transaction arose when Honour Field ('HF'), now a wholly-owned subsidiary of Sorbic, received funds from Albany in July 2008. Prior to its acquisition in September 2008, and in breach of its agreement with Albany, HF transferred £2 million to Hermes. Accordingly, as Sorbic requires the funds to continue its capital project, Albany has made the transfer as the Board of Albany believe such a loan to be in the best interests of both Albany and Sorbic, a company in which Albany has a significant investment.


Enquiries:

John McLean, Chairman, Albany Capital


+44 (0)203 178 4506

James Joyce, WH Ireland


+44 (0) 207 220 1698

John Bick, Hansard Group


+44 (0) 7872 061007



This information is provided by RNS
The company news service from the London Stock Exchange
 
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