ABBEYCREST PLC 
By RNS Number: 5563Q Abbeycrest PLC
20 October 2011
Press release 20 October 2011 Abbeycrest plc("Abbeycrest" or the "Group")
Moorgarth Loan Facility Update
On 4 May 2011, Abbeycrest announced revised termination
arrangements with the lessor, Moorgarth Property Investments
Limited ("Moorgarth"), regarding the leases over
Abbeycrest's former head office and car park at
Wilmington Grove, Leeds ("the Property").
Under these arrangements, Abbeycrest and Moorgarth agreed to
the surrender of the Company's leasehold interests in
the Property on 28 September 2011, in consideration for which
Abbeycrest entered into a loan facility letter dated 4 May
2011 ("Moorgarth Facility Letter"), secured by way
of a third ranking fixed and floating charge over the assets
of the Company and its subsidiaries.
The board of Abbeycrest announces that, in light of
continuing challenging trading conditions, the Company has in
recent weeks been in negotiations with Moorgarth, with a view
to agreeing a rescheduling of the repayment profile under the
Moorgarth Facility Letter, including the first instalment
of
£311,400 which was due on 28 September 2011.
Moorgarth has, throughout this period, provided the Company
with written confirmations temporarily postponing the
requirement to repay the first instalment. Following
termination of these negotiations yesterday, the Company has
informed Moorgarth that it will not now be making the payment
of the first instalment on 21 October 2011, being the date on
which the latest temporary postponement expires. Under the
terms of the intercreditor deed dated 4 May 2011 between
Abbeycrest and others, Moorgarth and Burdale Financial
Limited ("Burdale"), Moorgarth is unable to take
any action to recover the £311,400 without the prior written
consent of Burdale, which has not been given.
The board confirms that the Group's facilities with
Burdale remain available at the date of this announcement and
Burdale remains supportive.
For further information, please contact:
Simon Ashton, Executive Chairman www.abbeycrest.co.uk
Evolution Securities Limited Tel: +44 (0)113 243 1619Joanne Lake/Peter Steel www.evosecurities.com
Rawlings Financial PR Limited Tel: +44 (0)1653 618 016Catriona Valentine/Keeley Clarke www.rawlingsfinancial.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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