Tanfield takes loan ahead of Snorkel sale
By Euan Youdale10 September 2013
Tanfield Group has secured a loan from directors as the sale of Snorkel, its aerial work platforms business, continues.
The UK£500000 loan from two of the company’s directors will bolster its working capital, while the company seeks to conserve cash through the sale period.
In a statement issued today, Tanfield Group said, “The board is pleased to report that the company, together with the preferred potential purchaser is making significant progress with its due diligence and the completion of a suitable contract.
“As previously announced, the company is currently being managed to conserve cash through the sales process. In order to bolster the company's cash position and to provide working capital headroom through the period the company has secured a debt facility of £500000 from two of its directors.
"The loan is secured and has a fixed interest rate of 9.5% and is repayable on the earlier of completion of the sale of the powered access division or 20 December 2013.
“The company may need to raise further funds from exchange of contract to completion. The board will seek alternatives sources of funds, however, these directors have indicated they would be prepared to extend further funds if necessary.”