Amphion Innovations buys itself time over promissory notes

5th Jan 2016 11:06

(ShareCast News) - Amphion Innovations worked to assure investors on Tuesday it had bought itself some time over its promissory notes.The AIM-listed developer of medical and technology businesses reported on a meeting of the holders of the company's unsecured convertible promissory notes, which was held on 30 December 2015.Amphion said that, after due consideration, it was resolved by a large majority of note holders that the terms of the notes would be amended so the due date for settlement would be 28 February 2016, rather than 31 December 2015."Discussions with the note holders about a longer-term resolution are expected to be concluded by the end of February 2016", the company's board said in a statement.Amphion also announced it had agreed in principle to replace the $3.3m payable to R James Macaleer, the former chairman of the company, and the $3.3m of notes payable to the RJM Amphion Trust, a trust set up for the benefit of Mr Macaleer's children, with the issue of new promissory notes that would now mature a year later on 31 December 2016.The rate of interest on the new notes would remain unchanged at 7%."In no case will any payment be made on the new notes until the amounts outstanding under the company's existing loan facility are fully repaid", the board assured."The final payment under the facility is currently scheduled for 1 November 2016."