Eco City Vehicles, a co-developer and supplier of the London licensed Mercedes Vito taxi, has confirmed an extension of its financing arrangements with Mercedes-Benz.
Mercedes-Benz has maintained the company's existing stocking facilities of £5.75m in total, in order to support the working capital required for the continued growth of the business.
The terms of the facilities are in line with the company's existing facilities and will enable the company to order additional taxis from MB when required.
Eco City Vehicles said that in order to facilitate the extension of this stocking facility, KPM-UK Taxi Plc Discretionary Pension Scheme has agreed a letter of subordination addressed to Mercedes-Benz Financial Services UK Limited in relation to a total of £0.9m, out of a total outstanding loan balance of £1.2m to the pension scheme as at 31 July 2013.
The scheme's beneficiaries are Peter DaCosta, Michael Troullis and Keith Marder, who all shareholders of the group. DaCosta is also a director of the group.
The pension scheme has undertaken to MBFS to maintain the subordinated pension loan until 31 August 2014 by lending back to the group, subject to HMRC rules, within 30 days of receipt any repayment of principal amounts necessary to ensure that the outstanding loan balance will not be lower than the Subordinated pension loan balance.
At 1:57pm: [LON:ECV] share price was +0.06p at 1.88p.
