PLASTICS CAPITAL benefits from some ‘post Fred’ RBS generosity!
The specialist plastics products group provided an update on an agreement reached with its bankers, Royal Bank of Scotland ("RBS"), in relation to the banking facilities that RBS currently provides to the Company.
Minor amendments to these facilities have been agreed in order to provide the Company with greater covenant and cash headroom over the next 12 months, as bank debt is repaid. Management commented that the costs associated with amending these facilities were not significant. It must be an opportune moment to renegotiate with RBS. Having given Fred a wacking great pension in recognition for his contribution towards the biggest loss in UK corporate history it’s probably hard for them to justify charging a small UK engineering group an excessive renewal fee - wishful thinking perhaps? Shares in Plastics have staged quite…