1 March 2011
Vyke Communications plc
("Vyke" or the "Company")
Update on discussions with lenders
Vyke Communications plc (AIM: VYKE), the mobile Voice over Internet Protocol provider, announces that, following the announcement made on 7 January 2011, it has continued discussions with its unsecured bondholder and its unsecured lender in relation to repayments of £1.0 million originally due on 31 December 2010 (plus accrued interest) and £1.0 million originally due on 4 January 2011 (the "Payments"). Further details are contained in the announcement made on 2 December 2010.
The board of Vyke (the "Board") is pleased to announce that the bondholder and the lender have each agreed to a further conditional extension of the deadlines of the Payments from 28 February 2011 to 31 May 2011 (the "Extension") in order to conclude discussions which the Board believes should facilitate a long-term solution, to both the timing of the Payments and the repayment of Vyke's other creditors, and ensure Vyke should have a sustainable business model moving forward.
The Extension is conditional upon Vyke procuring the termination of the joint venture agreement entered into on 12 July 2010 with Bonjour Europe Limited, a wholly owned UK subsidiary of BLS TEL Holdings LLC (the "Joint Venture Agreement"). In the event that Vyke is unable to procure the termination of the Joint Venture Agreement then the Board will need to seek alternative sources of funds of which there can be no guarantee or take steps to protect the interests of creditors.
Further announcements in relation to the discussions above will be made at the appropriate time.
----ends----
- For further information please contact: Vyke Communications plc
Vyke Communications Mohammad Asif, Chief Executive | +44 20 3137 1560 |
|
|
Allenby Capital Limited | +44 20 3328 5656 |
Nominated Adviser Brian Stockbridge / Alex Price |
|
|
|
|
|
Threadneedle Communications | +44 20 7653 9850 |
Graham Herring / Terry Garrett |
About VYKE
Vyke Communications plc is a mobile Voice over Internet Protocol ("VoIP") provider and is headquartered in the UK. The strategic goal of Vyke is to combine its expertise in VoIP-based communication systems, mobile data service creation/handset technology and wholesale carrier network management to provide a converged communication solution. Vyke's current set of mobile-oriented products offers up to a 90% discount compared to current typical mobile operator pricing structures.
About VYKE MOBILE IP
Vyke Mobile IP is the leading mobile-oriented Voice over IP (VoIP) service offering users up to 90% discount compared to typical mobile operator pricing structures. One of the first mass market mobile VoIP services, launched in April of 2006, Vyke Mobile IP features mobile oriented sign-up steps, automatic configuration services and pricing.
About the VYKE product suite
The Vyke suite of communication products features advanced services providing users with low cost, mobile operator/fixed line provider independent ways of making voice calls and sending text messaging from the mobile phone, PC and internet.
Please visit www.vyke.com
