Turbo Power Systems Inc.
TSX : TPS
AIM : TPS

Turbo Power Systems Inc.

March 30, 2010 02:00 ET

Turbo Power Systems Inc. ("The Company") 2008 Loan Note Update

LONDON, UNITED KINGDOM--(Marketwire - March 30, 2010) - Turbo Power Systems (TSX:TPS) (AIM:TPS) is pleased to announce that it has agreed with the 2008 Loan Note holders to renegotiate the terms of the 2008 Loan Note to allow more flexibility in working capital.

Under the terms of the 2008 Loan Notes, if at any point during the time the 2008 Loan Notes are in issue the unrestricted cash balance of the Company falls below a threshold of Pounds Sterling 750,000 (the "Threshold Level"), the 2008 Loan Notes are repayable on demand at the request of the majority of the 2008 Loan Note holders.

Currently, the 2008 Loan Note holders have agreed to remove the requirement to maintain cash above the Threshold Level. This agreement expires on 1 April 2010.

The Company is pleased to announce that it has agreed with the Loan Note holders to extend this period by one month such that the requirement to maintain cash balances above the Threshold Level will be reinstated commencing 1 May 2010.

This agreement will help the Company to take advantage of existing and future opportunities whilst providing short term additional working capital.

Contact Information

  • Turbo Power Systems Inc.
    Richard Bayliss
    +44 (0)20 8564 4460
    or
    FinnCap
    Marc Young & Henrik Persson
    Corporate Finance
    +44 (0)20 7600 1658
    or
    FinnCap
    Stephen Norcross & Brian Patient
    Corporate Broking
    +44 (0)20 7600 1658