Sydney, Dec 16, 2008 AEST (ABN Newswire) - The Board of ComTel Corporation Limited (ASX:CMO)(PINK:CMMEF) is pleased to advise that the Company has paid $7.9 million due under the Empowered Communications acquisition agreements. This payment was funded from the net proceeds of the A$9.1 million rights issue which was successfully completed on 12 December 2008. In addition, the A$0.9 million balance of the $1.75 million short term bridging loan was repaid to Co-Investor Capital Partners Pty Limited.
Debt Restructuring
The $15 million debt and equity fund raising announced on 22 September 2008 has recapitalised the Company and restructured its existing debt. ComTel has debt of $9.2 million comprising:
- A$5.0 million of senior debt owing to Co-Investor, repayable over 3 years;
- A$2.7 million supplier finance owing to Vodafone, repayable in monthly instalments of $80,000 until May 2010, when a final balloon payment of $1.1 million will be due; and
- the existing A$1.5 million redeemable convertible note which matures in July 2010.
New Cornerstone Investor
CMO is pleased to report that Co-Investor Capital Partners, a Sydney-based active investment manager, has become the Company's major shareholder. As previously announced, Phil Pryke has agreed to become a director of the Company.
Co-Investor actively engages as a major shareholder in ASX and NZX small cap companies.
Contact
David Sweet
Managing Director
Mob: +61-414-888-999
Emma Cullen-Ward
Investor Relations
Mob: +61-414-989-137
Website www.comtelcorporation.com.au
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