LONDON (ShareCast) - (Sharecast News) - Walcom Group updated the market on its working capital position on Friday, saying that under the terms of an existing bank facility, and as it had anticipated, a short-term bank loan of CNY 1m (£0.11m) is due for repayment by the company in the second week of December.
The AIM-traded firm said it had agreed a repayment plan with the lender, where the loan would be repaid in monthly instalments over a period of six months, with the final instalment due in June.

It said the bank loan would not be renewed, as previously envisaged.

The board said it was in discussions with its chief executive Francis Chi regarding the provision of a further loan to help stabilise its working capital position.

However, if the company was unable to secure further funding, it said it had adequate working capital to meet its liabilities as they fall due until the end of December.

"Whilst the board is hopeful that discussions regarding the provision of further funding will have a successful outcome, there can be no guarantee that the company's working capital position will be stabilised," the board cautioned in its statement.

"In the event that it is unable to address the working capital shortfall, the company may be unable to continue its operations and may be forced into liquidation with a consequential diminution in value to shareholders."

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