Liquidation of Subsidiary

RNS Number : 2846E

Accuma Group PLC

25 September 2008

 

Accuma Group Plc

('Accuma' or 'the Group')

Liquidation of Subsidiary

On 18 September 2008, Accuma Group Plc announced that it was reviewing options for its loan broking division, Loan Line (Holdings) Limited and its subsidiaries (together 'the Loan Line Group'). The Board has spent considerable time since then  in discussion with the management of the Loan Line Group and has concluded that the Loan Line Group would be insolvent without further financial support from Accuma.  Due principally to the withdrawal from the sector of a number of major funding providers, conditions in the Loan Line Group's markets are very poor, with a dearth of wholesale funding, and the Directors have therefore concluded that it is not in the interests of Accuma's  shareholders to continue to fund the Loan Line Group's losses. Accordingly  the Loan Line Group directors have convened a meeting on 14th October 2008 under section 98 of the Insolvency Act 1986 to appoint a liquidator to put the Loan Line Group, other than its dormant subsidiaries, into a Creditors Voluntary Liquidation.

For the six months ended 30 June 2008 the Loan Line Group recorded a loss of £196,000 and at 30 June 2008 it had net liabilities of £81,181. In the December 2007 accounts a full impairment charge was made for the goodwill of the Loan Line Group, of £11.8 million.  

The closure of the Loan Line Group will result in a write off of approximately £600,000 intercompany liability and an additional net cash outflow of around £90,000 in settlement of liabilities due to the Loan Line Group. At 30 June 2008, Accuma Group Plc had net cash of £1.5m. 

The Board will provide an update to shareholders as soon as possible. 

For further information, please contact:

Charles Howson Chief Executive 

Andrew Bland Finance Director 

Accuma Group Plc                                  Tel: [phone]

Lindsay Mair/Stewart Dick

Daniel Stewart & Company plc                 Tel: [phone]

Simon Rothschild/Oliver Winters

Bankside Consultants                             Tel: [phone]

 

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