Sale of Aircraft

RNS Number : 5278J

Cambria Africa PLC

08 August 2012

 

Cambria Africa plc

("Cambria" or the "Company")

Sale of Aircraft 

Cambria (AIM:CMB) announces that it has sold two aircraft owned through its wholly owned subsidiary LonZim Air (B.V.I.) Limited: a Fokker F27-500 Cargo (F27) and an ATR 43-320 (ATR)  (collectively the "Aircraft").   The Aircraft were leased to 540 (Uganda) Limited and Five Forty Aviation Limited (Kenya) (collectively "540").

Ongoing investigations by the Company in recent months have determined the Aircraft, which have been kept in poor condition, are missing equipment and are not currently airworthy.  They have been sold for an aggregate of US$200K to a Kenyan operator, the consideration being received as an initial 10% upon signing of the agreement and thereafter in five equal monthly instalments following formal transfer of the aircraft and registration.  The price is in line with an independent third party valuation obtained by the Company and represents a book loss on sale of US$3,250K

Cambria recognized a Contingent Asset of US$2,934K in its Interim Financial Statement for the period ending 29 February 2012 (announced on 31 May 2012) relating to amounts payable by 540 in relation to the two aircraft, which was over and above an amount payable by 540 of US$1,369K previously accrued.  Cambria continues to recognize a Contingent Asset in this amount.

Cambria now further recognizes a Contingent Asset amounting to US$462K relating to additional amounts payable by 540 in respect of on-going maintenance and lease charges and related contractual interest, to the date of sale.  It also accrues additional contingent asset of US$2,225K relating to the deterioration in Market Value of the Aircraft, and the significantly lower amount the Company was able to obtain through a sale, due to the poor condition the aircraft were found to be in.

The total amount recognized by Cambria as being owed by 540 is now US$6,990K, of which US$5,621K are Contingent Assets.

About Cambria Africa plc

Cambria Africa plc, quoted on the AIM market of the London Stock Exchange, is a long term, active investment company, building a portfolio of investments primarily in Zimbabwe.

Contacts
Cambria Africa plc	www.cambriaafrica.com
Ian Perkins	[phone]
Edzo Wisman	[phone]
WH Ireland Limited	www.wh-ireland.co.uk
James Joyce / Nick Field	[phone]

 

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