Abbeycrest in £2.1m funding deal

JEWELLERY firm Abbeycrest said today it had negotiated a £2.1m finance increase with its Thai lender.

Abbeycrest Thailand, the Leeds group's wholly owned subsidiary, agreed the seasonal working capital deal with longstanding lender Siam Commercial Bank PCL.

Last month Abbeycrest breached profitability covenants with senior lender, Burdale Financial, a subsidiary of Bank of Ireland, after the high price of gold dented demand, margins and working capital.

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Yesterday Abbeycrest said the Thai deal is made up of an increase of 1.9m to its invoice financing with trade clients and an additional 200,000 to its Letters of Guarantee for the purpose of purchasing gold from its nominated suppliers.

The deal with Siam takes Abbeycrest's extended facilities to 5.8m and are to cover the expected peak working capital requirements of the August to December period. They are renewable annually.

The firm said all its other principal terms and conditions remain unchanged.

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