The future of troubled telematics company, Minorplanet looks more certain after it raised over £1.4m from a new share offering as well as securing £400,000 in new loans.

The company has also settled a dispute relating to alleged debts owed by its former Spanish subsidiary, which could have cost it hundreds of thousands of pounds.

The refinancing was approved by shareholders at an extraordinary general meeting yesterday.
Minorplanet’s open share offer, which closed on August 27, received applications for 988,328 new shares, meaning the company raised £1.45m.

The telematics company has negotiated additional funding of up to £400,000 through block discount loan facilities with Siemens Financial Services and ING Lease.

In addition, Minorplanet has agreed to pay Spanish company Aspury Park £149,000 (€170,000) in three instalments following a judgment in favour of Asbury Park by the Spanish Court of the First Instance for £1.05m (€1.2m)including interest.

Minorplanet will also issue Asbury a transferable warrant to subscribe for up to 450,000 shares.

In February 2008 Minorplanet was notified that the debt purportedly owing from its former Spanish subsidiary to Banco Popular, which it allegedly guaranteed, had been assigned to Asbury Park.

Lawyers for Asbury Park subsequently threatened to commence proceedings.

“The board believes that the settlement is in the best interests of the company in that it eliminates a significant uncertainty relating to future costs and potential liability attributable to this long standing dispute in respect of its former Spanish subsidiary,” said Minorplanet.