22 August 2017
Find out more

AIT hammers out refinancing agreement

01 August 2002  |  3938 views  |  0 ait_1

Embattled AIT Group has agreed terms for the take up of an immediate interim loan finance facility from a group of investors led by Richard Hicks, a non- executive director and founder and former chairman of the company.

Under the agreement, the core investor group will lend AIT £6 million on a secured basis, £2 million of which is to be available to the company immediately. The remaining £4 million facility is being made available so that the company will have sufficient finance up to the time of an Extraordinary General Meeting, should it be required. It will only be advanced with the approval of the core investor group.

The core investor group hold an option to convert the full amount of the loan into ordinary shares of AIT following shareholder approval. The interim finance will be provided by a combination of Bessemer Venture Partners - a US technology-oriented venture capital firm - several local private investors and Richard Hicks.

AIT has also struck an agreement with its bankers. AIT's bankers will not demand repayment unless certain events, such as insolvency, occur before 12 September 2002.

The interim finance forms part of a re-financing package whereby AIT will raise up to approximately £11 million before expenses, to be fully underwritten by Old Mutual Securities, and a placing of shares with the core investor group raising in aggregate an additional £2.5 million.

AIT, a supplier of customer relationship management software to banks, has been looking for a buyer after issuing two profit warnings and encountering subsequent liquidity difficulties. The company says it has met with a number of interested parties but "no offers have been received that warrant further consideration".

The board believes this injection of working capital into the company will be sufficient to secure AIT’s medium and long-term future and preserve its position as an independent company.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

AIT receives refinancing proposal

AIT receives refinancing proposal

16 July 2002  |  3279 views  |  0 comments
AIT suspends shares as credit dries up

AIT suspends shares as credit dries up

19 June 2002  |  3353 views  |  0 comments
AIT for sale as audit uncovers further shortfalls

AIT for sale as audit uncovers further shortfalls

13 June 2002  |  3485 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.vasco.comvisit www.dorsum.eu

Who is commenting?

A Finextra member Finextra Member Commented on: Real-time payments in...
A Finextra member Finextra Member Commented on: Barclays uses sensors...

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
11892 views comments | 26 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
10303 views comments | 22 tweets | 31 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
9911 views 0 | 5 tweets | 1 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
9622 views comments | 10 tweets | 8 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
9597 views comments | 19 tweets | 23 linkedin

Featured job

Find your next job