Further to the October 2007 settlement (the "Settlement") with Hanco ATM Systems Limited ("Hanco"), Cashbox, the UK ATM provider, is pleased to announce a restructuring of that agreement.
The Company has been able to renegotiate the Settlement with Hanco by issuing new convertible loan notes on 19 September 2008 (the "Loan Notes") to satisfy and settle the original debt created in October 2007.
The Loan Notes have a principal sum of £1.8 million and now accrue interest at a fixed rate of 5 per cent per annum previously fixed at 20% per annum for 2008/09 in the original settlement and are now repayable by 30 September 2013 (the "Redemption Date"), whereas the original agreement had been due for settlement by October 2009.
Alongside the principal amount of the Loan Notes, any accrued interest is also convertible. Cashbox, at the discretion of the Board, is also able to repay the Loan Notes and any accrued interest in advance of the Redemption Date, in part or in full. Should a repayment not occur, the conversion price is the lesser of the prevailing market price and 5p.
The Loan Notes cannot be converted prior to 30 September 2009 and a maximum of £900,000 of principal and accrued interest may be converted between 30 September 2009 and 30 September 2010. The remainder of the principal and interest may be converted on or after 30 September 2010 and before 30 September 2013. Hanco is now a subsidiary of The Royal Bank of Scotland Group plc ("RBS").