Telematics provider, Minorplanet Systems has taken a loan from its chief executive Terry Donovan to provide it with working capital requirements.
Included in these requirements is the need for cash to pay creditor arrears.
The £300,000 loan is repayable over 24 months and bears an interest rate of 8% over the Barclays Bank base rate.
The loan is secured by a debenture over the assets of the company and certain of its subsidiaries.
“This is the first of a series of proposed actions designed to return the group to financial stability and profitability,” Minorplanet said in a statement.
More details on these actions and an update on the company's trading and financial position will be provided as part of the 2009 preliminary announcement which is expected in late February 2010.