Travelzest plc Further re Suspension (2321S)

TIDMTVZ

RNS Number : 2321S

Travelzest plc

05 November 2013

5 November 2013

Travelzest PLC

("Travelzest" or the "Company")

Further re Suspension

Further to the announcement made on 4 November 2013, the Company announces that it has been unable to secure additional funding and as such, is unable to continue to trade as a going concern. As a result of the Company's inability to meet the terms of a demand letter served by its lender, Elleway Acquisitions Limited ("Elleway"), the Company requested Elleway to appoint administrators. Consequently, Elleway has appointed Ian James Corfield and David John Dunckley of Grant Thornton UK LLP, 30 Finsbury Square, London EC2P 2YU as administrators of Travelzest PLC with effect from 10.11 am on 5 November 2013.

The decision to request the appointment of administrators was taken after careful consideration and having explored all options to raise additional capital.

Contemporaenously, pursuant to an order issued by the Ontario Superior Court of Justice, Aldenham Canada Acquisition Corporation, a company owned and controlled by Elleway and its associates ("Aldenham Canada"), purchased all of the material assets of the Company's Canadian subsidiaries. The result of this transaction is that customers and suppliers of the subsidiaries will trade with Aldenham Canada with immediate effect. Pursuant to a second order issued by the Ontario Superior Court of Justice, a receiver was appointed to manage the wind down of the Canadian subsidiaries which are effectively shell companies.

The proceeds from the disposal of the Canadian Subsidiaries are not expected to be sufficient to discharge the Company's remaining secured and unsecured creditors and it is therefore highly unlikely that shareholders will receive any return for the shares they hold.

Trading in the Company's Ordinary Shares on AIM remains suspended.

Enquiries:

 
 Grant Thornton UK LLP 
 Ian Corfield/David Dunckley            [phone] 
 
 Travelzest plc 
 Christopher Howell - Non-Executive     Via Redleaf Polhill 
  Chairman 
 
 Redleaf Polhill                        [phone] 
 Rebecca Sanders-Hewett / Jenny Bahr    [e-mail] 
 
 Sanlam Securities UK Limited 
  (Nominated Adviser and Broker)        [phone] 
 Simon Clements / Virginia Bull 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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