Speymill directors Jim Mellon and Bob MacDonald have lent the AIM-listed property fund manager and contractor an unsecured loan of £3.3m to provide working capital for the group.

Earlier this week the company asked for its shares to be suspended pending clarification of its financial position.

Mellon has committed £3m of the loan and MacDonald has committed £300,000. The term of the loan is 18 months and the interest rate is 12% a year with a facility fee of 3%.

The loan will be available for drawdown in three equal instalments with the first instalment having been available to be drawn down yesterday and the next on 5 February 2009 with the final instalment available from 1 March 2009.

The loan has been made to provide working capital for the group but the board plans to convert the loan into convertible preferred shares as part of an offer in which all shareholders of Speymill will have the opportunity to participate.

As well as its construction arm, Speymill Contracts, it manages two AIM-listed overseas property funds – Speymill Deutsche and Speymill Macau – and has an asset management company, Goal, and a retirement village joint venture.

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