RNS Number : 9851Y
Cattles PLC
14 September 2009
14 September 2009
Cattles plc
Cattles plc completes the sale of Cattles Invoice Finance Limited to AnaCap
Following approval of the shareholders at the General Meeting on 27 August 2009, the Board of Directors of Cattles plc ("Cattles") today announces that it has completed the sale of the entire issued share capital of Cattles Invoice Finance Limited (together with its subsidiary Cattles Invoice Finance (Oxford) Limited) (the "CIF Group") (the "Disposal") to ABS FS Limited, a company controlled by funds managed by AnaCap Financial Partners.
The consideration for the Disposal is £10.8 million in cash (which is equal to the expected net asset value of CIF Group as at completion of the Disposal) plus the repayment of inter company loans of £59.6 million, subject to final adjustments, on a pound for pound basis, for the net assets and inter company balances as at completion, after the preparation of completion accounts, and subject to certain retentions as described in the circular to shareholders dated 11 August 2009.
The proceeds of the Disposal will, after deduction of Disposal related costs and the amounts to be paid into the retention account, be used to repay bank indebtedness of approximately £65.6 million in consideration for the release of the bank guarantees previously given by Cattles Invoice Finance Limited and Cattles Invoice Finance (Oxford) Limited. This forms part of the Board's strategy of working closely with Cattles' debt providers to sustain their support for the Cattles group's action to stabilise its financial position, preserve liquidity and reshape significantly the continuing Cattles group.
Cattles is still in constructive discussions with its key financial creditors to obtain a standstill agreement.
For further information please contact:
Margaret Young, Executive Chairman, Cattles plc
Geoffrey Pelham-Lane/Paul Marriott, Financial Dynamics
Tel: 020 7269 7252
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