Working Capital Funding Update (4510A)

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RNS Number : 4510A

Eatonfield Group plc

01 February 2011

1 February 2011

Eatonfield Group plc

("Eatonfield" or "the Group")

Working capital funding update

On 20 December 2010, the board of Eatonfield announced that the Group had sufficient working capital funding through to late January 2011. Eatonfield continues to defer payment of amounts due to certain of its senior lenders and trade creditors to a later date. On the basis that the relevant lenders and trade creditors do not demand payment in the short-term and that Eatonfield continues to receive their support, the board now expects that the Group's existing financial resources will provide it with sufficient working capital funding until late February 2011.

The board believes that the previously notified negotiations for the sale of the Group's Welsh land portfolio and agreement of related follow-on housebuilding contracts, both of which remain subject to the consent of the Group's lenders, are now approaching the final stages. Following conclusion of these negotiations, the board then intends to seek agreement to similar arrangements for the Group's Corus and Birkwood sites as well as pursue plans to raise further equity. The board also confirms that all of the Group's existing bank facilities remain available at the date of this announcement.

For further information please contact:

 
 Eatonfield Group plc                    Tel: [phone] 
 Brian Corfe (Executive Chairman) 
 Rob Lloyd (Group Chief Executive) 
 Duncan Syers (Group Finance Director) 
 
 
 Evolution Securities Limited   Tel: [phone] 
 Joanne Lake/Peter Steel 
 
 
 Optiva Securities Limited   Tel: [phone] 
 Jeremy King 
 
 
 Threadneedle Communications   Tel: [phone] 
 Graham Herring/John Coles 
 

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