LONDON (ShareCast) - (ShareCast News) - Adamas Finance Asia announced on Thursday that, as a result of a restructuring, its indirect 33.6% shareholding in Fortel Technology Holdings has been converted into an $11.3m interest-bearing loan.
The AIM-traded firm said the conversion represents a step in its long-term strategy to convert its legacy portfolio into income-generating assets.

As at 30 June the group's portfolio was valued at $110.1m, with the interest in Fortel representing $11.3m.

The terms of the novated portion of the Loan are that it is repayable after three years and has a coupon of 3% per annum in the first year and 8% per annum thereafter.

Duncan Chui, who - as a result of the restructuring - indirectly controls a significant shareholding in Fortel, has personally guaranteed the obligations of the borrowers to the company.

"This restructuring represents a small but significant move in line with our stated objective of positioning the company to become cash generative with no legacy asset portfolio," said Adamas chairman John Croft.

"It fits with our intended focus on collateralised lending, structured finance and strategic finance."

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