Shareholder Loan Update

RNS Number : 5202C

Blue Star Capital plc

17 April 2013

 



Blue Star Capital plc

("Blue Star Capital" or "the Company")

Shareholder Loan Update

Blue Star Capital is pleased to announce that further to the announcement dated 2 April 2013, the Company has agreed a further extension to the shareholder loan agreement (the "Loan") entered into on 28 April 2011, and thereafter extended on 1 June 2012, 12 October 2012 and 3 January 2013. The original amount of the Loan was £400,000 which, with the accrued interest, had been due for repayment by 31 March 2012.

Save as set out below, the terms of the Loan remain unchanged, except that repayment, which had been extended to 31 March 2013, has now been deferred until 30 June 2013 (the "Final Redemption Date").

As at 31 March 2013, the amount outstanding under the Loan (including interest and repayment premium) was £576,214.53 ("Revised Principal").  The Revised Principal will accrue interest until the earlier of a) repayment of the Loan or b) the Final Redemption Date at a rate of 2.0% per month, or part month, from 31 March 2013 until repayment in full or the Final Redemption Date.

As a condition subsequent to extending the terms of the Loan, the Loan holders have requested that an initial repayment of £20,000 is made to them by 30 April 2013. As such, the Company is in the process of raising funds, from existing and new investors, to make the initial payment and provide some additional working capital. An announcement will be made in due course.

Anthony Fabrizi and a company connected with Noel Lyons (both individuals being non-executive directors of the Company) are amongst those that are providing the Loan and are each a related party for the purposes of AIM Rule 13.  The independent directors of the Company, being The Rt Hon The Lord Dear Kt QPM DL LLB, Peter Varnish OBE and General Sir Michael Wilkes KCB CBE consider, having consulted with the Company's nominated adviser Daniel Stewart & Company plc ("Daniel Stewart"), that the terms of the Loan are fair and reasonable insofar as the Company's shareholders are concerned.

Enquiries:

Blue Star Capital plc	Tony Fabrizi	Tel:[phone]
Daniel Stewart & Company plc (Nomad & Joint Broker)	David Hart Director, Corporate Finance Martin Lampshire, Head of Corporate Broking	Tel: [phone]

 

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