Itsarm PLC Proposed Compulsory Liquidation (6638B)

TIDMITS

RNS Number : 6638B

Itsarm PLC

05 June 2023

For immediate release

5 June 2023

Itsarm plc

Proposed Compulsory Liquidation

Itsarm plc (AIM: ITS) ("Itsarm" or the "Company" ) announces that, further to the announcement on 26 May 2023, the Company's directors have assessed the solvency of the Company and concluded, in consultation with their advisers, that steps should be taken for the Company to enter compulsory liquidation.

The directors consider that, taking into account the Company's contingent and prospective liabilities, there is a significant risk that creditors of the Company would suffer detriment if the Company was not placed into a formal insolvency procedure immediately.

A creditor's voluntary liquidation ("CVL") is not considered appropriate for the Company, given the material risk that, if a special resolution was put forward for the Company to be wound up and liquidators appointed as part of a proposed CVL, a similar outcome would arise to that in relation to the member's voluntary liquidation proposed at the adjourned general meeting of the Company on 26 May 2023. Such an outcome would mean that the Company would be forced to continue to trade and incur the costs of an unsuccessful CVL proposal, which would likely be detrimental to the Company's creditors.

Accordingly, the directors have resolved to make a petition to the High Court that the Company be wound up. A further update will be made in due course regarding the timing of the hearing for such petition and any subsequent order to wind up the Company.

Enquiries:

 
 Itsarm plc                                              via Hudson Sandler 
  Jim Sharp, Director 
  Richard Monaghan, Director 
 Hudson Sandler                                         [phone] 
  Alex Brennan                                  [e-mail] 
  Ben Wilson 
 Liberum Capital Limited (Nomad and Broker) 
  Clayton Bush 
  Scott Mathieson 
  Miquela Bezuidenhoudt                                 [phone] 
 

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June 05, 2023 06:05 ET (10:05 GMT)