Turbo Power Systems Inc.
TSX : TPS
AIM : TPS

Turbo Power Systems Inc.

March 25, 2009 03:00 ET

Turbo Power Systems Inc. ("the Company"): Loan Note Update

CALGARY, ALBERTA--(Marketwire - March 25, 2009) - Turbo Power Systems Inc. ("the Company") (TSX:TPS) (AIM:TPS) -

On the 19th June 2008, the Company issued Pounds Sterling 3 million of loan notes ("Loan Notes"), the terms of which were amended on the 15th August 2008. Under the amended terms, if at any point during the time the Loan Notes are in issue the unrestricted cash balance of the Company falls below a threshold of Pounds Sterling 750,000, the Loan Notes are repayable on demand at the request of the majority of the Loan Note holders.

The Company is pleased to announce that it has agreed with the Loan Note holders that, for a three month period commencing the 25th March 2009, the above threshold will be reduced to Pounds Sterling 300,000. The Company does not anticipate that unrestricted cash balances will fall below this level during this three month period.

This short term increase in available cash will help the Company to take advantage of existing growth opportunities, whilst providing additional working capital headroom. The Company anticipates that it will be able to operate above the original threshold thereafter.

Paul Summers, CEO, said "Our markets are bearing up well in the current climate and are still providing the business with good growth opportunities. Cash flow is a key focus of the management team and we expect the Company to continue to build on the successes of the past year and to continue to develop its order book."

Contact Information

  • Turbo Power Systems Inc.
    Paul Summers
    +44 (0)20 8564 4460
    or
    Turbo Power Systems Inc.
    Richard Bayliss
    +44 (0)20 8564 4460
    or
    KBC Peel Hunt
    Oliver Scott
    +44 (0) 207 418 8900
    or
    KBC Peel Hunt
    Nicholas Marren
    +44 (0) 207 418 8900