Manganese Bronze extends credit terms with Geely

Reuters - Manganese Bronze Holdings Plc (MNGS.L), maker of London's traditional black cabs, said it agreed with China's largest private automaker Geely Automobile Holdings Ltd (0175.HK) for an extension of credit terms.

Geely, whose parent Zhejiang Geely Holding Group bought Sweden's Volvo from Ford Motor Co (F.N) in August, owns a fifth of the British company.

Under the agreement, Geely will extend credit terms for money due from Manganese Bronze to both Shanghai LTI Automobile Co Ltd and Shanghai Maple Automobile Co Ltd by 120 days.

Manganese Bronze, which has a 48 percent stake in Shanghai LTI, pledged its stake to Shanghai Maple as security for the payment obligations. Shanghai Maple currently holds a 1 percent stake in Shanghai LTI.

Manganese Bronze also said results for the full year would be in line with market estimates, and that it was well positioned to return to profitability in 2011.

Shares in the company were indicated up 2.3 percent at 42.98 pence on Wednesday on the London Stock Exchange.