Appointment of Administrators

 

TIDMENN 
 
RNS Number : 5816O 
Ennstone PLC 
10 March 2009 
 

 
 
Ennstone plc 
("Ennstone" or the "Group") 
Appointment of Administrators and sale of UK and Polish subsidiaries 
 
 
Ennstone announces the sale of the UK and Polish subsidiaries following the 
appointment of business restructuring partners, Nick Dargan and Matthew 
Cowlishaw of Deloitte LLP, as Joint Administrators of the Company on 9 March 
2009. Accordingly, application has been made today to the UKLA and London Stock 
Exchange to cancel Ennstone plc's listing on the London Stock Exchange with 
immediate effect. 
The principal UK and Polish subsidiaries are not in administration and have been 
sold to Breedon Holdings Ltd, a company backed by Barclays Ventures and a number 
of other financial institutions, for a consideration which is not expected to 
result in any return to shareholders. 
The Group has explored a broad range of strategic options over the past eight 
months including the possibility of raising new equity and a sale of all or 
parts of the Group's businesses, including the possibility of an offer to buy 
the Group's shares. Despite the support of the Group's UK banking syndicate, the 
deteriorating market conditions have resulted in the Group being unable to 
achieve a solvent restructuring of Ennstone plc. 
The Board of Ennstone plc commented: 
 
 
"The Group has been facing the most challenging economic conditions for decades 
which have reduced operational performance. These conditions have also prevented 
the Group raising the further financing it needed or from realising disposals at 
prices which could have resolved the Group's financial problems. The sale of the 
UK and Polish subsidiaries has secured the jobs of over 1000 of the Group's 
employees." 
Matthew Cowlishaw, Joint Administrator, commented: 
 "The slowdown in the house building and infrastructure sectors along with the 
lack of funding for potential acquirers has played a significant role in the 
Group's difficulties.  Securing a going concern sale of the UK and Polish 
subsidiaries, which will protect over 1000 jobs, is positive news for the 
employees and the industry as a whole." 
 
 
 
 
10 March 2009 
ENQUIRIES: 
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|  College Hill                          |                     Tel: [phone] | 
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| Mark Garraway                          |                                        | 
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| Altium                                 |                    Tel: [phone]  | 
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| Adrian Reed                            |                                        | 
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This information is provided by RNS 
            The company news service from the London Stock Exchange 
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