Bagir Group clears $21m debt with lenders

4th Nov 2016 08:11

(ShareCast News) - AIM-listed Bagir Group, which develops and manufactures high quality men and women's tailored fashions, cleared its debt with two lenders.The company repaid its $21m outstanding bank debt to its lenders, Bank Leumi and Discount Bank, and is now debt free.The lenders are currently cancelling various charges and securities they hold over the company.Chief executive Eran Itzhak said: "This is transformative for us, making Bagir into a very different business. We have a clear strategy to pursue and we are well advanced down all the various routes to achieving it."Our primary focus is on exceeding expectations with our existing clients and winning new clients and in the last few months we have been making very good progress on all fronts."In July, the company agreed with its lenders, as part of a recovery plan, to partially repay outstanding borrowings with the balance written off to strengthen the company's financial position and grow.The company paid $6.3m from a September private placing with 8.33% of the total issued share capital allocated to the lenders.As part of the deal, the company agreed that if it generated annual earnings before tax, depreciation and amortisation (EBITDA) above $6.5m between 2016 and 2024, then a payment will be due of 50% of the excess annual EBITDA generated, to a maximum payment of $8m.Shares in Bagir Group were up 0.14% to 3.63p at 0801 GMT.