Anittel activates $5m finance facility

IT and telecom services provider Anittel (ASX:AYG) has revealed it has commenced its $5 million finance facility with Commonwealth Bank (ASX:CBA).

Anittel had considered activating this facility by the end of March to be an essential condition for it to continue operating as a going concern.

As a result of the new facility, Anittel has closed down its older NAB (ASX:NAB) $1.8 million working capital facility. The first drawdown from CBA was used to pay out Anittel's outstanding debt to NAB.

This NAB facility had been secured by a personal guarantee from chairman and managing director Peter Kazacos. As well as being a larger facility, the CBA agreement was negotiated to release Kazacos of this guarantee.

This facility is secured by a charge over the company's assets.

Anittel had in February also reached an agreement with Kaz Capital to raise $3 million to repay a $1.25 million short-term loan from Peter and Vicki Kazacos.

AYG shares stayed flat on Friday at $0.006.