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EX-10.1
Advice of Borrowing Terms
RELATIONSHIP OFFICE: South Yorkshire Corporate DATE: 23 August 2000
Business Centre
BORROWER(S) REGISTERED NUMBER:
C J Vander limited 763852
International Silver Company Limited 03768277
We intend that the facilities listed in Part 1 of the attached Facility Schedule
(the "on-demand facilities") should remain available to the borrower(s) until 18
February 2001 and all facilities should be reviewed on or before that date. The
facilities are, however, subject to the following:
- the terms and conditions below,
- the specific conditions applicable to an individual facility as detailed in
the Facility Schedule,
- the Security detailed in the attached Security Schedule, and
- the attached General Terms.
ALL AMOUNTS OUTSTANDING ARE REPAYABLE ON DEMAND WHICH MAY BE MADE BY US AT OUR
DISCRETION AT ANY TIME AND THE FACILITIES MAY BE WITHDRAWN, REDUCED, MADE
SUBJECT TO FURTHER CONDITIONS OR OTHERWISE VARIED BY US GIVING NOTICE IN
WRITING.
CONDITIONS:
The following conditions must be satisfied at all times while the facilities are
outstanding, but this will not affect our right to demand repayment at any time:
- Monthly management accounts to be provided to us within 21 days of the end
of the month to which they relate; to include Profit & Loss, Balance Sheet
and Aged Debtor/Creditor listings with suitable commentary / explanations
re any divergence from budget.
- Facilities remain available subject to our agreed lending formula
calculated on the following basis:
[Debtors less than 3 months + Stock x 40%] to cover utilised facilities in
a ratio of minimum 2:1
- The Advance Payment guarantees in favour of Charles Kendall & Partners
Limited are issued subject to the following conditions:
1. When the advance payment monies are received, they will be held in a
separate account designated NatWest Bank re C J Vander Ltd. Interest
accrued on the balance of this account to be credited to the account of C J
Vander Limited on the bank's standard interest payment dates.
2. On receipt of the Standby Letter of Credit from Bank of America in the sum
of L345,188.58, the advance payment of L262,979.64 will be transferred from
the separate account to the account of C J Vander Limited. In addition when
the Advance payment of L82,208.94 is received, this will be credited to the
account of C J Vander Limited for its cashflow use.
3. There is no commitment on the part of the Bank to release any other amounts
to the company unless and until the Bank's liability under the Advance
payment Guarantees ceases or satisfactory alternative security is held.
4. Execution of a counter indemnity to the bank by C J Vander Limited.
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- There is no commitment on the part of the Bank to support the residual
funding need that may be evidenced in the revised cash flow that you are to
produce.
- Given the current trading of C J Vander Ltd and insolvent balance sheet
footings (ie treating the parental support as a long term liability), we
will continue to extend existing levels of support on the basis of the
clear integrity of the parent undertaking.
INTEREST SET OFF:
Cleared debit and cleared credit balances in the same currency on non-interest
bearing current accounts and loan accounts repayable on demand specified below
(the "Interest Set Off Accounts") will be used to calculate, on a daily basis,
the net cleared debit balance of the Interest Set Off Accounts. The Interest Set
Off Accounts, which we have agreed are to be set off for interest calculation
purposes, are detailed in the attached Facility Schedule which also specifies
the frequency at which interest will be payable and the rate or rates at which
it will be charged on the net cleared debit balance.
Cleared debit balances which are set off on a daily basis by cleared credit
balances on the interest Set Off Accounts will incur interest at the Set Off
Rate specified in the attached Facility Schedule.
/s/ A. Tyas
Corporate Manager
For and on behalf of
National Westminster Bank Plc
ACCEPTANCE:
- To signify your agreement to the terms and conditions outlined above please
sign and return the enclosed copy of this Advice of Borrowing Terms within
28 days.
FORM OF ACCEPTANCE
I accept the facility/facilities on the above terms and conditions and
confirm that I have been authorized by the Board(s) of Directors of the
Borrower(s) to sign this Form of Acceptance on behalf of the Borrower(s).
By (name and title): /s/ Peter H. Minchin, Director of Finance Date 10/9/00
For and on behalf of: C J Vander Limited
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Facility Schedule
PART 1 - FACILITIES REPAYABLE ON DEMAND:
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GROUP COMPOSITE
FACILITY
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<S> <C> <C>
Accounts included in the NAME: ACCOUNT NUMBER:
Group Facility C. J Vander Limited
Arrangement: International Silver Company Limited
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Limit: Gross L250,000
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Limit: Net L250,000
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Purpose: To finance working capital via Overdraft / Issue of Documentary Credits
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Repayment: Fully fluctuating
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1st Debit Interest Rate: 1.00% above the Bank's Base rate for the overdraft only
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2nd Debit Interest Rate: 4.00% above the Bank's Base rate on borrowing in excess of agreed
facilities for the overdraft only
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Interest Payable: Quarterly
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Arrangement Fee: L1,250.00 to be debited on 20th March 2000 to cover the 6 month period to
06/09/2000. An amount of L1,050 will be debited on 7 September 2000 to cover
the period from 6/9/2000 to 18/2/2001.
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Excess Fees: We will be entitled to charge an excess fee at the Bank's published rate
for each day any agreed limit is exceeded (see our "Services & Charges for
Business Customers" brochure for details).
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INTEREST SET-OFF ARRANGEMENT
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The Interest Set-Off NAME: ACCOUNT NUMBER:
Accounts C. J Vander Limited
International Silver Company
Limited
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1st Debit Interest Rate: 1.00% above the Bank's Base rate (delete as appropriate)
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2nd Debit Interest Rate: 4.00% above the Bank's Base rate on borrowing in excess of agreed
facilities
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Set-Off Rate: 0% per annum
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Interest/Set-Off Quarterly
Payable:
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Account to be debited: 29885477
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Facilities not subject to a Group / Composite Facility.
TERMINABLE INDEMNITIES
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Name of Borrower: C J Vander Limited
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Limit: L 1,012,722
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Type and Purpose: Advance Payment Guarantee in favour of Charles Kendall & partners Limited
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Basis of Expiry: delivery of goods
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Arrangement Fee: 0.5% of outstanding value per annum payable monthly in advance - first
instalment of L420 to be debited on 24 August 2000 to account number
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Indemnity Fee: 1.5% of outstanding value per annum payable quarterly in advance, to be
debited to account number
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CHEQUE NEGOTIATIONS
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<S> <C>
Name of Borrower: C J Vander Limited
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Limit: L10,000
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Purpose: Negotiation of Foreign Cheques with Recourse
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Fees: Subject to separate tariff, calculated on sterling value of cheque.
Information available upon request or at the time the service is
provided.
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SETTLEMENT RISK
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Name of Borrower: C J Vander Limited / International Silver Company Ltd
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Limit/Frequency: L60,000 per day
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Type and Purpose: Facilitate BACS payments via Bankline Payaway
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SETTLEMENT RISK
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Name of Borrower: C J Vander Limited / International Silver Company Ltd
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Limit/Frequency: L 140,000 at any one time
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Type and Purpose: Facilitate payments abroad via Bankline Payment Manager
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SECURITY SCHEDULE
We rely on the security detailed below (and require additional security where
specified) to repay, on demand, all your current and future liabilities (both
actual and contingent) to us. These liabilities include, without limitation,
those incurred by you under the facility(ies) specified in the Facility
Schedule.
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<CAPTION>
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DATE EXECUTED/NEW: SECURITY GIVEN/TO BE GIVEN BY:
------------------------------ ------------------------------------------ -----------------------------------
<S> <C> <C>
27/09/89 Cross Guarantee Structure between C J Vander Ltd Roberts
& Belk Ltd, John Biggin Ltd,
Modern Silverware Products Ltd,
Vander Properties Ltd and C J
Vander (Antiques) Ltd.
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21/9/99 Cross guarantee between C J Vander Ltd &
International Silver Co. Ltd.
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13/01/74 Mortgage Debenture incorporating an
equitable charge over Vander House C J Vander Ltd
providing Fixed and Floating Charge over
all company assets
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11/11/85 Supplemental Specific Charge over book C J Vander Ltd
debts
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8/10/99 Mortgage Debenture providing Fixed and International Silver Company Ltd.
Floating charge over all company assets.
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30/01/74 Mortgage Debenture providing Fixed and Roberts & Belk Ltd.
Floating charge over all company assets.
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04/09/91 Supplemental Specific Charge over book Roberts & Belk Ltd.
debts
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26/04/78 Mortgage Debenture providing Fixed and John Biggin Ltd.
Floating charge over all company assets.
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12/03/92 Mortgage Debenture providing Fixed & Modern Silverware Products Ltd.
Floating charge over all company assets.
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27/09/89 Mortgage Debenture providing Fixed and C J Vander (Antiques) Ltd.
Floating charge over all company assets.
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New Standby Letter of Credit in the sum of Bank of America to National
L345,188.58 by Bank of America Westminster Bank on behalf of
Syratech Incorporation
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