Update regarding dispute

RNS Number : 3140D

Cambria Africa PLC

26 October 2015

 



Cambria Africa Plc

("Cambria" or the "Company")

Update regarding dispute

Further to Cambria's announcements of 21 September 2015 and 30 September 2015 regarding the terms of the secured loan agreements held with Consilium Corporate Recovery Master Fund Ltd ("CCRMF"), the Company advises that the dispute remains unresolved. 

As announced previously, the Company strongly disputes CCRMF's claim that there has been an event of default that entitles Consilium to accelerate repayment of the loan and maintains that the due date of the loans as disclosed in its audited financial statements and as defined in the loan agreements, as amended, is 30 April 2016. The Company has received a statutory demand in the Isle of Man  in which CCRMF has formally demanded the sum of US$4,819,106.18 pursuant to the secured loan agreements. In response to the statutory demand, the Company has stated that there is a genuine and substantial dispute as to whether the debt is presently payable and that any future presentation of a winding up petition would constitute an abuse of the Court's process.

Furthermore, on the 9 June 2015, Cambria announced the provision of a standby facility of $1.12m made available by Ventures Africa Limited ("VAL") to the Company which was to be used as security for costs in relation to its now settled litigation against Lonrho. Pending the resolution of the dispute with CCRMF, as a consequence of which CCRMF has converted their floating charge on Cambria's assets, particularly the Company's primary bank accounts, the Lonhro settlement as well as the shares of Lonzim Holdings Limited, the Company is relying on this standby facility to fund its day-to-day operations.

The Company will provide a further update regarding the dispute in due course, as appropriate.

Ends

Contacts
Cambria Africa Plc	www.cambriaafrica.com
Samir Shasha	[phone]
Josie Watenphul	[phone]
WH Ireland Limited	www.wh-ireland.co.uk
James Joyce / Mark Leonard	[phone]

 

END

 

 

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