Zamano rose 48 per cent in Dublin trading, the most in three weeks, after it agreed an amended loan facility with Lloyds Banking Group's Irish unit, Bank of Scotland Ireland.
The amended facility "contains a waiver of the covenant test as at Dec. 31 2010" as well as a "revised capital repayment schedule which reflects the current trading of the company," it said in a statement today.
The repayment arrangement will see €1.2 million paid by 2011, €1.2 million by the end of 2012 and €3.462 million by the end of 2013.
The capital repayment scheduled for the financial year ending December 31st, 2013 includes an amount of €250,000 in relation to an exit fee for the bank which has been agreed in consideration for the bank entering into the amended facility letter.
The Bank has also reserved the right to increase the amount of the scheduled capital repayments in the event that the financial performance of the group exceeds the Bank's expectation. In addition, the amended facility letter prohibits the company from paying a dividend to shareholders except with the consent of the bank. The amended facility letter will become effective upon the satisfaction of certain conditions precedent, which is expected to occur on or before January 15th, 2011.
Zamano, based in Dublin, traded at 4 cents at 11:32 am this morning.
Additional Reporting: Bloomberg