Eatonfield draws loan from funding partner

Cheshire-based developer Eatonfield Group has announced it drew down £250,000 of a loan agreed with Jenard Properties, which is one of its development partners.

Eatonfield said it is issuing 25 million new shares at 1p per share to pay for the loan.

In announcement made on the London Stock Exchange this morning, the company said: "The £250,000 drawn down under the Facility will be used to fund potential acquisitions as part of the board's plans to provide a degree of stability to the Group's financial position."

The company added that Jenard also agreed to make a further £250,000 available to the company last Friday under the facility, meaning £900,000 is available to it.

Eatonfield said Jenard now has a 13.1% stake in the company, following the issuing of new shares and that "£900,000 remains available under the Facility for Eatonfield to draw down at any time until 31 August 2010."

The statement added: "The directors anticipate that the remaining funds available, if drawn down in total, will provide Eatonfield with sufficient working capital through to 31 August 2010. The directors continue to pursue other options to raise further equity and therefore increase the level of working capital funding available to the Group, although, as previously notified, the directors believe that the provision of such funding will largely depend on the arrangement of a "standstill agreement" with all of Eatonfield's banks."

Rob Lloyd, who is heading a bid to buy FA Cup finalists Portsmouth Football Club, is the owner of Eatonfield.