CCH International plc
19 September 2007
Press Release 19 September 2007
CCH International plc
('CCH' or the 'Company')
Re Suspension
On 16 August 2007 trading in the Company's shares on AIM was suspended following
an announcement that the Company was in discussions regarding certain of its
funding lines. These discussions were necessitated as a result of one of the
Company's funding banks ('the First Bank') indicating that it intended to
terminate agreements with the Company and CCH Europe GmbH ('GmbH'), CCH's
principal subsidiary, following a review by the First Bank which revealed that
approximately US$340 million of lending advanced through GmbH had not been
applied to short term receivables but to longer term commitments. The First Bank
demanded immediate repayment of all funds (totalling approximately US$500
million) advanced under those agreements by the First Bank on its own behalf and
on behalf of a second bank for which it was acting as agent ('the Second Bank').
In view of the threat of disruption and uncertainty caused to the Group's
business by these developments, the Board decided to request suspension of
trading in its shares.
Confidential negotiations to conclude an agreement with the banks for repayment
of the funds over a three year period are at an advanced stage. On 19 August
2007 the Company and GmbH, amongst others, concluded an agreement with the First
Bank. This agreement is conditional on a number of matters including
arrangements being reached with the Second Bank, which arrangements remain
subject to ongoing negotiations.
In connection with the above arrangements on 18 August 2007, in order to protect
the Company's assets, CCH entered into an agreement to sell GmbH to Eren Nil,
CCH's Chief Executive Officer and the sole director of GmbH, for US$1 with an
option to re-purchase GmbH for US$1 at any time up to three years and six months
from the date of the agreement. This agreement may be rescinded by CCH in the
event that approval of the transaction by the shareholders of CCH is not
obtained by 30 September. In the event that CCH does not sell GmbH within 28
days of the arrangements with the banks mentioned above being completed, CCH has
under-taken to grant the First Bank an option to acquire GmbH for US$1.
The Company is not currently in a position to issue notification of all the
information required by Schedule 4 to the AIM Rules or to send a circular to
shareholders convening a meeting to seek their consent to the disposal of GmbH
to Eren Nil, a related party, as required by the AIM Rules.
The Company is not yet in a position to ascertain the full impact of recent
events on its future prospects but it is unlikely that business activity will be
sustained at levels hitherto reported.
A further announcement will be made as soon as possible.
For further information, please contact:
CCH International Plc www.cch-international.com
Ian Salter, Non-Executive Chairman Tel: +44 (0) 20 8334 0871
info@cch-international.com
Insinger de Beaufort http://www.insinger.com
Peter Ward, Tel: +44 (0) 207 190 7000
pward@insinger.com
Media Enquires:
Abchurch Communications www.abchurch-group.com
Charlie Jack / George Parker Tel: +44 (0) 20 7398 7700
charlie.jack@abchurch-group.com
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.