Update
16 July 2008
XL TechGroup (AIM: XLT) advises that it is in negotiations with Laurus Master Fund Ltd ("Laurus") in connection with a reorganisation of the Company's assets and debt.
Excluding interest, Laurus is owed a total of US$87.6 million under a series of five notes, with the first note of US$24.9 million scheduled for repayment on 30 December 2008. The notes are secured against the assets of XL TechGroup, including shares held in its various companies.
Negotiations to provide additional financing and/or reschedule the note obligations have not been successful. Discussions with potential strategic investors and partners in the portfolio companies of XL TechGroup have been impacted by deteriorating market conditions. Laurus has notified XL TechGroup that it is now in default of its loan provisions and, as a result, the Company is negotiating with Laurus regarding restructuring XL TechGroup and its associated debt.
In light of the above, trading in the shares of the Company remains suspended. Further updates will be provided as events progress.
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