Ennstone Share Discussion Threads

[brumont] 25/2/2009 14:13

I am usually an optimist Palwing, but if you look at my take on the situation per #1320, you will see a different scenario.

As I said, I hope I am wrong.

[palwing] 25/2/2009 13:31

Although the holding company of the group, Ennstone plc, has certain
contingent liabilities in relation to the business of Ennstone, Inc., neither
the Group's UK nor Polish businesses have any such liabilities or any trading
relationship with the Group's US operations and they continue to operate as
normal.

The Group's UK businesses, Ennstone Johnston and Ennstone Thistle, along
with its Polish subsidiary Ennstone Sp. z o.o., have continued to perform
satisfactorily in the difficult trading environment. These operations are
expected to have sufficient cash headroom through to the end of March 2009, on
the basis of the on-going support of the UK and Polish lenders and finance lease providers, and the Group continues to work towards an agreed restructuring with its UK lenders within such timeframe which it is anticipated will secure the future of the UK and Polish trading companies.

A further announcement will be made in due course.


Some positive stuff there?

[brumont] 25/2/2009 13:01

So there we have it.
The US has gone down. Why they did what they did yesterday just before a chapter 11 will always be a mystery to me...?
THe UK holding Co in which we have the shares is liable to some of the US funders for an undisclosed sum.
The trading coy s will be sold off to cover it and the holding co wound up. Hope I am wrong but if I am not, then I cant see us getting anything out of this.

[brumont] 25/2/2009 08:54

Nod,
you missed my point.
It is Shareholders permission that was required to ratify the deal not permission from the Main Board Directors.
Was this done on a nod (sorry - no offence!!) and wink from the UK...?

Either way, the US Directors have exposed themselves legally to the shareholders and I cant imagine any US Institutional Holder not having a pop at them if it suits their purpose at the time.

[whyme] 24/2/2009 22:22

Ok now whats the remainder asset value ?

[nod] 24/2/2009 10:13

I think it's clear that the US company had been instructed not to sell assets without prior approval:

"The sale was completed contrary to formal, written instruction from Ennstone plc in which the directors of Ennstone, Inc. had been reminded that significant disposals would require the approval of Ennstone shareholders under the Listing Rules."

The legal advisor in the USA appears to have advised the US directors that they can sell... and they did. It probably reflects the cultural differences: the Yanks just get on with it, while the Brits dither and dither and dither....

The sale was 32% below net book value but they need the cash.

[brumont] 24/2/2009 08:01

THe having taken legal advice bit is interesting.
What is not clear and what may never be clear, is whether the UK Board was onside with the deal....!

[nod] 23/2/2009 20:15

Interesting.

[smebagi] 23/2/2009 19:50

fyi

RNS Number : 7577N Ennstone PLC 23 February 2009

Ennstone plc

("Ennstone" or the "Group")

US Asset Disposal

On 28 January 2009, trading in Ennstone shares on the London Stock Exchange were suspended pending clarification of the Group's financial position. At the time of the suspension the cash position of the Group's wholly-owned US subsidiary, Ennstone, Inc. was critical, having suspended payments of interest charges and finance lease repayments to its US lenders. At that time discussions with those lenders were on-going. No agreement on a way forward has yet been concluded.

On 21 February 2009, the Board of Ennstone plc was informed by the directors of Ennstone, Inc. that, having taken legal advice, Ennstone, Inc. had completed the sale of certain assets of Ennstone, Inc. located in Charlottesville and Elkton, Virginia to fund immediate cash requirements. The sale was completed contrary to formal, written instruction from Ennstone plc in which the directors of Ennstone, Inc. had been reminded that significant disposals would require the approval of Ennstone shareholders under the Listing Rules.

On 20 February 2009, Ennstone, Inc. sold the trade and assets of its ready mixed concrete businesses located in Charlottesville and Elkton, Virginia, to Wilson Ready Mix LLC for US$3.1 million in cash (the "Transaction"). Following the Transaction, Ennstone, Inc. will be required to repay approximately US$0.95 million of outstanding Industrial Revenue Bonds and finance leases over certain of the Assets. At 31 December 2008, the Assets had a net book value of US$4.6 million and for the financial year ended 31 December 2008, generated a loss of US$0.55 million. Ennstone, Inc. is understood to be currently negotiating with its US lenders as to how the proceeds of the Transaction, which will be retained in the US, will be applied.

A further announcement will be made in due course.

[brumont] 22/2/2009 07:42

Nod,
you are of course correct.
McLeod was Chairman and CEO until Sept 17 when Brown was appointed as an interim Chair pending Cooper in January.
McLeod is still CEO pending a new appointment and his retirement in 2009, or at least that was the plan.....!
That being the case, he should be accurate in his prediction of April but this is the domestic UK operation not the US one, which was to run out of cash first.

[nod] 18/2/2009 19:12

Julian Cooper is the Chairman

[brumont] 18/2/2009 18:29

Article from Bloomberg follows


Ennstone Has Enough Cash Until Middle of April, Chairman Says

By Scott Hamilton

Feb. 18 (Bloomberg) -- Ennstone Plc, the U.K. construction- materials supplier that today said rescue takeover talks had ended, has enough cash in its domestic operation to continue trading until the middle of April, Chairman Vaughan McLeod said.

Ennstone, which suspended its shares in London trading last month after breaching banking terms, is pursuing a number of different options, McLeod said in an interview, declining to elaborate further. Marwyn Materials Ltd. has withdrawn a takeover proposal, Ennstone said earlier today.

"We anticipate in the next few weeks to have fixed some kind of resolution to our issues," McLeod said.

To contact the reporter on this story: Scott Hamilton in London at [e-mail].

Last Updated: February 18, 2009 11:07 EST

[wikroberts] 18/2/2009 16:47

On Bloomberg just now they said that Ennstone's chairman said that they have enough cash to trade until April....

[tricky1992000] 18/2/2009 16:16

it seems to have been a real lemon

[abadan2] 18/2/2009 16:13

This sounds lime the end!!

[palwing] 18/2/2009 12:37

WhoooooOOOooooo..it's a ghost town in here.....

[bull_mega] 16/2/2009 09:00

hows cooking going ??????

[myowndarkness] 09/2/2009 19:27

Yeh, strange... if they had been forced into a pre pack then they would have been obliged to have put out an rns. What are the alternatives?

1. Sell the UK and Polish parts to allow the american ennstone inc to continue? Possible government contracts available with Obama's infrastructure investments?

2. Obama's plan has allowed them to renegotiate with lenders in the US thus allowing ennstone plc to continue as a going concern?

we wait...

[bull_mega] 09/2/2009 10:01

I hope no news is good news !!!!!

[brumont] 06/2/2009 14:29

Bull.
I admire your optimism, but the US side is the problem and that has been at less than 1% of a while now.
The indebtedness will be tied at least partly into equipment leases and these will be at fixed rates.
However, the fact that they have been talking for a week hopefully means that they are still looking for a solvent solution. However, dont expect the UK company to get away scot free from the US problem.

[bull_mega] 06/2/2009 13:34

now 1% interest rate must get good deal for ENN soon.

[brumont] 03/2/2009 12:26

I dont believe UK and Poland are the real issue. It was always stated these were solvent.
It is the US side where cash was expected to run out at end January. However,on the basis of half full rather than half empty, the very fact that there wasnt an announcement yesterday may mean they are still talking with banks and trying to come to a solvent solution. If they dont, then the Group goes down as the US debt is secured by UK.
This is why they are suspended.