Source - SMW
Hydrodec Group, the cleantech industrial oil re-refining group, has agreed an extension to the term of its working capital facilities provided by its largest shareholder Andrew Black, who is a director of the company.

The company announced on 12 May that it had the option to extend the  repayment date in respect of the three facilities by 12 months to the end of December 2018 and this had now been agreed  with the interest rate on all three facilities aligned at 10% per annum on drawndown funds for the remaining term of the loans.  

The company has agreed to pay a one-off extension fee of 1% of the total amount available under all three facilities - the fee will be payable at the time of repayment of the principal and accrued interest.  

The company may repay all or part of the loans prior to the final repayment date without penalty. 

In addition, Black has agreed to extend the third facility by £0.3m (to £0.8m) to provide the group with additional working capital headroom. 

The first two facilities total £2.15m and £4.25m respectively.

The group said: 'While the company's improved operating and financial performance continues to produce positive EBITDA, the group will benefit from the additional headroom in that it will not be required to withdraw valuable working capital from the operations to service central corporate costs.'