Zamano cuts new deal on debts
Published 05/01/2011 | 05:00
Irish mobile services group Zamano has agreed a new capital repayment schedule with Bank of Ireland (Scotland) and new covenants the firm said reflected the "current trading" of the company.
In a statement to the Stock Exchange yesterday, Zamano said that Bank of Scotland (Ireland) will also receive a €250,000 exit fee in return for agreeing to the new schedule.
Zamano, headed by chief executive John O'Shea, has been struggling with declining revenues and mounting losses.
The company has agreed to pay back €1.2m this year, €1.4m in 2012 and €3.46m in 2013. The final year's payments will include the €250,000 exit fee.
Zamano said it believed the amended facility letter drawn up with the bank provided it with the "flexibility and investment capacity" required to pursue its strategy.
Last September, Zamano chairman Mike Watson said the company faced "some months of effort" before its long-term prospects became clearer.
The firm's turnover slumped 35pc to €8.75m in the six months to the end of June, while earnings before interest, tax, depreciation and amortisation fell 59pc to €950,000.