Sunday, February 1, 2009

Speymill bosses put up cash to keep contractor afloat

Directors of property and contracting group Speymill have put up their own money in the form of a ВЈ3.3m loan to provide working capital for the contracting arm Speymill Contracts.

Earlier this week Speymill asked for its shares to be suspended pending a statement on its finances after the board warned that Speymill Contracts, which specialises in design and build for the hotel and leisure industry, had realised a significant loss before tax. Speymill Contracts has been hit by the collapse of several clients and subcontractors.

Chief executive Jim Mellon has committed ВЈ3m of the loan and fellow director Bob MacDonald has committed ВЈ300,000. The loan runs for 18 months at an interest rate is 12% a year with a facility fee of 3%.


Speymill bosses put up cash to keep contractor afloat


The loan can be drawdown in three equal instalments with the first immediately available, the next on 5 February and the final instalment available from 1 March.

The board plans to convert the loan into convertible preferred shares as part of an offer in which all shareholders of Speymill will have the opportunity to participate.

As well as its construction arm, Speymill Contracts, it manages two AIM-listed overseas property funds – Speymill Deutsche and Speymill Macau – and has an asset management company, Goal, and a retirement village joint venture.

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