Of late, REFFIND Limited (ASX:RFN) sought repayment of its promissory note in Loyyal rather than convert to equity from a risk mitigation standpoint, and as a result of impacts due to COVID-19 and global travel restrictions.
The unique circumstances driven by COVID-19 have significantly impacted Loyyal’s clients such as Emirates, thus, putting Loyyal in a difficult financial position in negotiations with REFFIND to repay the Note at this time.
RFN’s negotiations in conjunction with a consortium to recapitalise Loyyal and take up to a 55% controlling stake in Loyyal have failed, and Loyyal has filed for bankruptcy protection. Presently, RFN intends to bid for the assets of Loyyal, in conjunction with the consortium.
In case, bidding turns successful, RFN and the consortium shall continue to operate the business, subject to funding.
RFN may conduct additional capital raising, if required.
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