Designcapital renegotiates loans with Luxury Investments S.A

AIM-listed investment company Designcapital has renegotiated terms for two loans made available from Luxury Investments, according to its interim results for the six months ending June 30th.

The group, which was established to act as a consolidator within the European design space, stated that consolidated revenues for the six months to June 30th were zero and after taking account of finance income, finance costs and taxation, the retained loss attributable to shareholders was £185,121.

Several financial arrangements were made over the period, including the renegotiation of loans, a subscription for new ordinary shares and the creation of a working capital support facility.

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However, the company presented a challenging picture.

Designcapital: "Financial position remained weak""Notwithstanding the cash subscription, the company's financial position remained weak and it was currently unable to pay its creditors on time," the interim report stated.

During the period, the company renegotiated terms for two loans made available in 2009 and 2010. As a result of the negotiations, the repayment of the loans was extended to December 31st 2013.

The company secured a £25,000 subscription for new ordinary shares which were being issued at 10 pence per share.

On December 27th, Frdric Bobo, a director of the company, provided Designcapital with an extension of a working capital support of up to £150,000, to be drawn down by the company should it need additional funds.

Trading in the company's shares is currently suspended and the suspension will remain pending implementation of its investing policy. If the company has not implemented its investing policy by February 25th 2013, its listing on AIM will be cancelled pursuant to AIM Rule 15.

MF