Update Regarding Dispute

RNS Number : 8263A

Cambria Africa PLC

30 September 2015

 

Cambria Africa Plc

("Cambria" or the "Company")

Update regarding dispute

Further to the Company's announcement of 21 September 2015, Cambria provides an update on the dispute over the terms of a material contract, being the secured loan agreements held with Consilium Corporate Recovery Master Fund Ltd ("CCRMF").

The dispute arises over loans provided to the Company by CCRMF and the validity of CCRMF's attempt to accelerate the repayment of the loans as a result of an alleged change of control on 13 April 2015. On 13 April 2015, Cambria shareholders approved the subscription by Ventures Africa Limited ("VAL") of 107,000,000 ordinary shares in the Company which resulted in VAL owning 50.55% of Cambria. CCRMF and related parties hold 14.9% of Cambria Africa's shares.

The Company, upon taking advice, strongly disputes CCRMF's claims 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 is engaged with CCRMF to arrive at a mutually agreeable resolution. Nevertheless, Cambria reserves its rights to proceed with legal remedies as appropriate.

In the Company's announcement of 7 September 2015 it stated it expected to have sufficient working capital until April 2016 when these debt obligations of $5.1m become due and was confident it would be able to refinance or raise additional finance by that date. In the event that CCRMF's claim is upheld, the Company would need to raise further funds prior to that timeframe in order to meet an accelerated repayment of the loans.

There can be no certainty there will be a mutually agreeable resolution or further funds raised. The Company will provide  a further update in due course.

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

 

 

MSCPKKDPABKDDCN