US Asset Disposal

 

TIDMENN 
 
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. 
 
 
Enquiries: 
 
 
+------------------------------------+------------------------------------+ 
| Ennstone plc                       |                      01332 694 444 | 
| Julian Cooper/Vaughan McLeod       |                                    | 
+------------------------------------+------------------------------------+ 
|                                    |                                    | 
| Altium                             |                      0161 831 9133 | 
| Adrian Reed                        |                                    | 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| College Hill                       |                      0207 457 2020 | 
| Mark Garraway                      |                                    | 
+------------------------------------+------------------------------------+ 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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