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Charcol close to completing restructure

John Charcol has taken out a new debenture loan while its company accounts and annual returns remain overdue but the firm says its restructure is “almost complete”.

The debenture is not collateral-backed but it means the brokerage must seek the consent of the bank, Lloyds TSB, before making certain significant financial decisions.

The firm has failed to hand in its annual returns and latest accounts on time. Its annual returns were due in mid-November while its accounts were due at the end of October.

In March this year, Money Marketing revealed that the firm’s directors had given it a £1.5m loan to fill a gap in the accounts. At the time, KPMG warned of a “material uncertainty which may cast significant doubt on the group and the parent company’s ability to continue as a going concern”.

Marketing director Drew Wotherspoon says: “All financial issues that John Charcol had when John Garfield returned to the business as chief executive have now been resolved. John Charcol has had an infusion of capital as well as having arranged an overdraft facility which is currently unused. As part of the loan facility, a debenture has been granted to its bankers. It says something of the state of the business today that any loan facility should be granted. John Charcol’s restructuring is almost complete.”

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