Operational and funding update

 

TIDMCLEA 
 
RNS Number : 0943H 
Cleardebt Group PLC 
12 February 2010 
 

               ClearDebt Group Plc ("ClearDebt" or "the Company") 
 
12 February 2010 
 
Operational and funding update 
 
On 3 December 2009 ClearDebt announced that it had acquired from the 
administrator (Jonathan Elman Avery-Gee) part of the businesses and assets of 
four subsidiaries of Relax Group plc (in administration) ("Relax"), namely 
approximately 6,500 Individual Voluntary Arrangements (IVAs), Protected Trust 
Deeds and Debt Management Plans (the "Relax Assets"). 
 
The total consideration of GBP2.7m for the Relax Assets was to be paid in cash 
from the Company's own resources and existing facilities.  To date, the Company 
has already paid GBP550,000 and will shortly be making a further payment of 
GBP1,000,000.  The Board considered various options for funding this stage 
payment and decided that the existing resources of the Company would be better 
used in growing the business and for working capital purposes.  The Board 
therefore decided that this further payment of GBP1,000,000 should be financed 
as to GBP500,000 from the Company's own resources and GBP500,000 from a bridging 
loan, detailed below. 
 
The Company has entered into a bridging loan agreement dated 12 February 2010 
with Synergy Capital Limited ("Synergy") to provide a loan in the sum of 
GBP500,000 on commercial terms. 
 
David Mond, Chief Executive, said "We are delighted to have Synergy on board in 
this exciting time for the Company.  Having an entrepreneurial investor 
alongside us who thoroughly understands the market in which we operate will be a 
great asset to the Company." 
 
The Company intends to repay this loan within 2 months by way of an issue of 
Convertible Loan Notes and/or the Placing of further equity raising up to 
GBP3,000,000.  A further announcement will be made in this respect in due 
course. 
 
The balance of GBP1,150,000 which is due to the administrator of Relax in 
respect of the Relax Assets will be met from the proceeds of this new issue. 
 
Contacts: 
 
For further information, please contact: 
 
David Mond, CEO          ClearDebt Group plc                   Tel: [phone] 
2023 
David Shalom, FD          ClearDebt Group plc 
 
John Cowie                    Seymour Pierce Limited             Tel: [phone] 
8000 
Nicola Marrin                 Seymour Pierce Limited 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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