ABIBLO FINANCE - CAPITAL REDEMPTION RESERVE

Abiblo Finance - Capital Redemption Reserve
It is a reserve which is created while the company purchasing its own shares in situation which lead to the share capital reduction. 
The reserve cannot be distributed among the shareholders and the aim of the capital redemption reserve is to ensure the capital base of the company is maintained. 
Capital redemption reserve also provide protection to the creditor's buffer. Therefore the creditors will have confidence to invest in the company.