Woodbois shares slide as bank calls in loans

(Sharecast News) - Woodbois announced on Friday that Nykredit Bank has terminated loan facilities provided to the company's subsidiary, Woodbois International, demanding repayment in full by 17 January. The AIM-traded firm said Woodbois Limited, which guaranteed the loans, had also received a call on its guarantee.

It said the outstanding amounts totalled about DKK 6.8m (£0.76m) and €2.05m.

Nykredit's termination followed unsuccessful discussions over the last year aimed at reaching an amicable resolution for settling the debt.

The board said the bank had invited Woodbois to engage in further discussions to explore a potential settlement agreement.

Woodbois' directors said they believed that reaching a settlement was in the best interest of both parties, adding that with the assistance of advisers, it would work towards achieving a resolution promptly.

At 1428 GMT, shares in Woodbois were down 31.43% at 0.12p.

Reporting by Josh White for Sharecast.com.