Living Time is to receive a £450,000 loan from Alico to address liabilities of £257,000.
Living Time’s latest accounts show the firm had unaudited net current liabilities of £257,000 as at 31 December 2010. The accounts say the firm is to receive £450,000 of working capital support from Alico by February 28 to enable it to continue as a going concern.
The accounts show Living Time made a pre-tax loss of £284,265 for the year ended March 31, 2010.
The decision to provide the firm with capital support was made on December 20 last year, when Living Time signed heads of agreement with Alico to extend its distribution agreement beyond the expiry date of June 13, 2011.
The fixed-term annuity specialist will also implement a “wide-ranging cost reduction programme” which will see staff costs cut by 50 per cent by February 1.
Earlier this month, Money Marketing revealed sales staff had left Living Time after it reached a distribution deal with MetLife, who acquired Alico in November last year.