Amendment to Loan Agreement

 

TIDMMKM 
 
RNS Number : 7251C 
MKM Group PLC 
18 November 2009 
 

MKM Group Plc 
 
 
Amendment to Loan Agreement 
 
 
 
 
MKM Group Plc ("MKM" or the "Company") announces that, on 13 November 2009, the 
Company entered into a loan variation agreement (the "Agreement") with Brian 
Smillie, a director and substantial shareholder of the Company. The Agreement 
varies the terms of a loan agreement dated 2 August 2007 between Brian Smillie 
and the Company, whereby Brian Smillie agreed to provide an unsecured loan of up 
to GBP247,500 to the Company (the "Loan"), and a previous deed of variation 
dated 27 November 2008 which increased the loan by AUS$42,075. 
 
 
In terms of the Agreement: 
 
 
i) the principal amount of the Loan was reduced from GBP247,500 and AUS$42,075 
to GBP166,500 and AUS$42,075; 
 
 
ii) the interest rate was increased from 7 per cent. to 8 per cent. per annum, 
payable monthly in advance. 
 
 
iii) the repayment date was extended from on or before 30 June 2009 to 1 
February 2010, on which date the Loan is repayable in equal monthly instalments 
of GBP3,600 until fully repaid.  The Loan is also repayable if MKM disposes of 
its UK business or its UK business achieves accrued EBITDA of at least 
GBP700,000 in any 12 months ending on or after 1 July 2009. 
 
 
The Directors of the Company (with the exception of Brian Smillie who is 
involved in the transaction as a related party) consider, having consulted with 
the Company's nominated adviser, WH Ireland Limited, that the terms of the 
transaction are fair and reasonable insofar as its shareholders are concerned. 
 
 
For further information, please contact: 
 
 
+--------------------------------------+--------------------------------------+ 
| MKM Group Plc                        | 0161 877 1112                        | 
+--------------------------------------+--------------------------------------+ 
| Brian Smillie, Chief Executive       |                                      | 
+--------------------------------------+--------------------------------------+ 
| Matthew Toynton, Finance Director    |                                      | 
+--------------------------------------+--------------------------------------+ 
|                                      |                                      | 
+--------------------------------------+--------------------------------------+ 
| WH Ireland Limited                   | 0161 832 2174                        | 
+--------------------------------------+--------------------------------------+ 
| Robin Gwyn                           |                                      | 
+--------------------------------------+--------------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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