Notice of intention to appoint administrators (4274P)

TIDMDAV

RNS Number : 4274P

Davenham Group PLC

03 October 2011

RNS Number: 7227D

Embargoed for release at 12.45pm

3 October 2011

Davenham Group plc

("Davenham" or the "Company" and, together with its subsidiaries, the "Group")

Notice of intention to appoint Administrators

Davenham refers to its announcement on 28 March 2011 in which the Company confirmed that, in order to extend the steady platform from which to continue the run-off of the Group's loan book for the benefit of the Group's Banking Syndicate, the Banking Syndicate had extended the maturity of the Group's on demand bank facility from 31 March 2011 to 30 September 2011.

Following discussions between the Banking Syndicate and the Company, the Banking Syndicate has (following the expiry of the term of that facility on 30 September 2011) informed the Company that it will not be extending or renewing that facility and has demanded immediate repayment.

Given that the Group is unable to repay the amounts due to the Banking Syndicate following the expiry of the term of the facility, the Board has concluded that the Board should appoint Administrators to the Company (and to the remaining members of the Group) and therefore the Board intends to file with the Court (later today) the applicable notices of the intention to make those appointments.

The Board understands that the Administrators will work with the existing management team to complete the run-off of the Group's loan book in a prudent and orderly manner. The run-off to date has seen the Group meet (or exceed) the financial milestones set by the Banking Syndicate as part of the run-off process.

The Board anticipates that trading in the Company's shares on the Alternative Investment Market of the London Stock Exchange will be suspended by the London Stock Exchange with effect from 12.45pm today. The Board currently anticipates that the formal appointment of Administrators to the Company will take effect by no later than 10 October 2011.

 
 For further information please 
  contact: 
  Davenham Group plc                       0161 832 8484 
  Paul Burke                          www.davenham.co.uk 
 Hawkpoint Partners Limited 
  (Nominated Adviser) 
  Lawrence Guthrie / Graham Paton          0207 665 4500 
 MHP 
  Katie Hunt / Reg Hoare                   0203 128 8100 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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