London Town - the AIM-listed pub group has obtained unsecured loans of £2m. The company said it had got £1.4m from Burac Invest and also obtained a loan of £600,000 from Robar Limited. The loans are repayable with interest at 15%, calculated at quarterly rests, no later than 25 March 2009. There is no penalty for early repayment. London Town said: "The loans are to be used for general working capital purposes." Burac and Robar, are substantial shareholders of the company, are related parties for the purposes of the AIM rules and classed as related party transactions. Earlier this month the company unveiled Billy Buchanan as its new chief executive. The leisure executive – who qualified as an accountant with KPMG – also took the role of chief financial officer at the group, which operates 75 managed pubs and an estate of 225 tenanted pubs. He took the chief executive reins from Richard Gundry, who will assume the position of development director. Ian Robinson, previously executive chairman, will become non-executive chairman.