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LONDON - Amala Foods Plc (LON:DISH) has entered into a standstill agreement with its largest creditor, Riverfort, preventing repayment requests until October 7, 2026, the company announced Friday.
The food company is currently operating under a £100,000 convertible loan funding agreement with investor Philip Reid, who has nominated his son Sam Reid to the board as a non-executive director. The loan, which carries no interest and matures in August 2026, is being drawn down with the lender’s agreement.
Amala is seeking similar standstill arrangements with other convertible loan note holders as it faces various debt obligations currently due for repayment, though the company noted there is "no guarantee" it will secure these agreements.
The company is working with Reid to identify a potential acquisition target while seeking admission to the Equity Shares Commercial Company category of the Official List. Amala is also working to secure approximately £250,000 in additional funding to cover partial costs of any initial transaction.
The board highlighted significant financial uncertainty, warning that if further funding becomes unavailable or if debt holders demand immediate repayment, there is a "material risk" the company would seek an insolvency process that could lead to administration.
Amala noted in its statement that it continues to operate with minimal overhead costs, with directors receiving no remuneration, a practice the company said has been consistent in recent years.
The announcement follows an adverse opinion in the company’s audit report for the year ended March 31, 2025, regarding its outstanding long-term debt situation, according to the press release.
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