Under the terms of the new arrangement, the existing payment obligations of $50m in March 2010 and $50m in March 2011 have been amended such that $20m will be made in March 2010 with the remaining $80m paid over 4 installments of $20m each every six months until the full amount has been paid in 2012.
Esam Janahi, chairman of GFH, said: “By reaching this agreement with the LMC syndicate and also continuing our efforts to pursue assets sales gives the board confidence in GFH’s ability to manage both its debt and capital adequacy ratios and meet going concern standards.”
Ahmed Abbas, CEO of LMC, said: “The syndicate applauds the decisive action that GFH has undertaken, especially over the past six months to place itself in a position of growth and return to profitability. They are continuing with the right strategy and we look forward to seeing the fruits of their work.”
Ted Pretty, CEO of GFH group, said: “We have now achieved our objective of spreading the tenor of our obligations we will continue to steady and strengthen our liquidity position as we concentrate on revenue generation and cost control. I am confident we will generate a positive reaction in the market and amongst the investors once we announce shortly our products from our 2010 pipeline.”
