In a press release on 7 February, Glaston announced that it has agreed on a new long-term credit facility agreement, securing financing for at least the following 12 months.
On 20 December 2012, Glaston announced in a stock exchange release that it would initiate measures to strengthen the company’s financial position. As part of the total arrangement, the company’s objective was to negotiate a new long-term credit facility with the company’s current lenders.
On 7 February, Glaston announced that it has agreed on a new long-term credit facility agreement, securing financing for at least the following 12 months. The credit facility will enter into effect when certain conditions, such as a share issue and the conversion of convertible and debenture bonds into equity, have been fulfilled. Glaston has received commitments from a sufficient number of shareholders participating in the Extraordinary Meeting of Shareholders to ensure that the meeting will approve the share issue. In addition, Glaston has reviewed a sufficient number of commitments to ensure that the minimum required number of shares will be subscribed in the share issue. Furthermore, Glaston’s Board of Directors initiated negotiations at the end of 2012 with the convertible bond and debenture bond holders on the conversion of such loans into Glaston shares. A majority of convertible bond holders as well as the debenture bond holders have committed to exchange their bond holdings into Glaston shares.
Other actions related to strengthening the company’s financial position will be published in due course.