Reach4Entertainment makes amendment to debt facility with AIB

Reach4Entertainment Enterprises has proposed amendments to restructure its existing £14.8m loan facility with AIB Group.

Under the terms of the amendment, the Irish lender will no longer convert £5.2m of the outstanding principal debt due under the existing facility into new ordinary shares in the company or receive a European put option over the shares.

Reach4Entertainment said that instead, AIB will be given warrants over the same value of the shares exercisable only once the closing mid-market price of an ordinary share reaches 5p.

All other terms of the agreement as announced on 10 June remain the same, the company added.

The media and marketing group also said on Friday that it expects turnover for the year ended 31 December to be in line with market expectations. Still, it said full year results will be subject to earnings before interest, tax, depreciation and amortisation for the fourth quarter.

Executive chairman David Stoller said: “We are grateful for the continuing support shown to r4e by AIB and their commitment to working with the company to achieve an acceptable settlement of our bank facilities with them.

“Whilst trading for the year has been slightly behind where we expected to be at this stage, we are confident that the successful completion of the refinancing of our bank debt will position the company well for future growth."

At 0950 GMT, shares were down 14% at 2.05p.