Loans to Director

    RNS Number : 1045B
  BNS Telecom Group plc
  11 August 2008
   
    11 August 2008
    BNS Telecom Group Plc
    (the "Company")

    Loans to Director

    The Company's principal trading subsidiary, BNS Telecom Limited, has today entered into a loan agreement with Garry Moat, Chief
Executive, for, in aggregate, £797,048.  

    Pursuant to this loan agreement, the principal amounts outstanding are due to be repaid in full by 24 July 2009.  Interest charged on
outstanding borrowings up to 31 July 2008 has been capitalised and added to the principal of the loans.  The annual interest rate is to be
charged at 0.3 per cent. greater than the Company's cost of borrowing from time to time and will be rolled up and become payable in full on
24 July 2009.

    The Directors of the Company, excluding Garry Moat, consider that the terms of this loan agreement are fair and reasonable insofar as
the Company's shareholders are concerned.

    The loan agreement has been put in place to consolidate and regularise a number of unsecured loans made since 2007 to Garry Moat and to
two entities connected with him: Moat Properties Limited and Moat Property Partnership.  On 11 August 2008, Garry Moat assumed the loans
outstanding from Moat Properties Limited and Moat Property Partnership.

    As at 8 August 2008 (being the latest practicable date prior to the assumption of the loans by Garry Moat), the principal amount
outstanding in aggregate pursuant to these loans was £771,529. The split was as follows:

                            Principal loan outstanding as at 8 August 2008
 Garry Moat                                                       £650,815
 Moat Properties Limited                                           £63,327
 Moat Property Partnership                                         £57,387

    In addition to the principal amount outstanding of £771,529, interest capitalised as at 31 July 2008 totalled £25,519.

    It is the Board's intention to convene a general meeting to address the technical issues arising pursuant to the making of these loans
under the Companies Act 2006. A further announcement regarding such general meeting will be made in due course.

    Enquiries to:

 BNS Telecom Group Plc
 Graham Wilson, Non-executive Chairman       Tel: [phone]

 College Hill                                Tel: [phone]
 Adrian Duffield

 KBC Peel Hunt (Nominated Adviser & Broker)  Tel: [phone]
 David Anderson
 Oliver Scott


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