Tailoring Bagir Group (LON:BAGR) is one of the biggest movers on the AIM market this morning, rising over 20 percent after reaching an amended loan repayment agreements with its creditors.
Both Leumi Bank and Discount Bank agreed to waive covenant tests at both 31 December 2015 and 30 June 2016, and reduced long term loan repayments due this year from $2.7 million to $465,000, and extending the full repayment to the end of 2020. The company’s short-term revolving loan of $10 million has been reclassified as a long term loan, easing their financial pressure.
CEO Eran Itzhak said in a statement: “The waiver of the testing of the covenants is of immediate importance but of equal, if not more, significance is that we have secured agreement (with the banks) to a three year extension ot the repayment terms of the loans and the reclassification of the previous short-term revolving 12 month loan to a long-term facility.”
Bagir Group, a design and tailoring company currently listed on the AIM market, is currently trading up 20 percent at 4.50 pence per share. The company has a 52-week range of between 2.20 and 11.25.
04/01/2016