Update

    RNS Number : 2338Z
  XL TechGroup, Inc.
  16 July 2008
   

    

 Press Release  16 July 2008

    XL TechGroup, Inc.
    ("XL TechGroup" or "the Company")

    Update

    XL TechGroup (AIM: XLT) advises that it is in negotiations with Laurus Master Fund Ltd ("Laurus")
    in connection with a reorganisation of the Company's assets and debt. 

    Excluding interest, Laurus is owed a total of US$87.6 million under a series of five notes, with the
    first note of US$24.9 million scheduled for repayment on 30 December 2008. The notes are
    secured against the assets of XL TechGroup, including shares held in its various companies.
    Negotiations to provide additional financing and/or reschedule the note obligations have not been
    successful. Discussions with potential strategic investors and partners in the portfolio companies
    of XL TechGroup have been impacted by deteriorating market conditions. Laurus has notified XL
    TechGroup that it is now in default of its loan provisions and, as a result, the Company is
    negotiating with Laurus regarding restructuring XL TechGroup and its associated debt. 

    In light of the above, trading in the shares of the Company remains suspended.  Further updates
    will be provided as events progress. 


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