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Banks

UPDATE 2-JJB says bank deal to cost extra 8 mln pounds

* Says payment due February and April

* Says banks “remain supportive”

* Shares down 29 pct at 1512 GMT

(Adds detail)

LONDON, Jan 19 (Reuters) - JJB Sports Plc JJB.L, the struggling British sportswear retailer, said a temporary deal it struck with its lenders in December would require it to pay an additional 8.3 million pounds ($12.26 million) in fees.

The payment to Kaupthing, Barclays BARC.L and HBOS HBOS.L, which does not include interest, was expected in February and April, it said on Monday.

News of the extra fees had sent shares in JJB down 2.9 pence, or 29 percent, to 7.45 pence by 1512 GMT, valuing the business at 17.8 million pounds -- less than two weeks’ sales.

The December deal saw JJB avoid having to pay back a 20 million pounds bridging loan to Kaupthing by its due date of Dec. 14.

Instead JJB repaid 20 million pounds pro-rata across the three banks.

Having owed Barclays 60 million pounds and HBOS 15 million pounds it was granted continued access to facilities at both banks until Jan. 30.

It said on Monday that, in addition to the fees, it had agreed a margin uplift for both the Barclays and HBOS facilities to bring them in line with the terms of the Kaupthing facility.

“Barclays, HBOS and Kaupthing remain supportive of the company under the leadership of David Jones,” JJB said.

“The lenders and the company are in constructive discussions to extend the term of the standstill agreement (bank deal) and the lenders will be considering the provision of medium term facilities to support the business.”

Earlier this month, the 400-store group promoted retail veteran Jones to executive chairman. His task was to rescue the company and he immediately started a comprehensive review of the business.

Last week, JJB forecast a year to Jan. 25 underlying loss of 5 million to 10 million pounds, forecast year-end debt of 60 million pounds, said several parties were interested in buying its health clubs business. [ID:nLE171763]

It also emerged last week that JJB’s Chief Executive, Chris Ronnie, no longer owned any shares in the group after Kaupthing Singer and Friedlander’s administrators took control of the bulk of his 29 percent stake held in a joint venture. [ID:nLD686802] (Reporting by James Davey; Editing by Mark Potter and Andrew Macdonald)

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