MBL Group PLC Administrators appointed to subsidiary (6275R)

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RNS Number : 6275R

MBL Group PLC

15 June 2018

MBL Group plc / Epic: MUBL / Index: AIM

RNS ANNOUNCEMENT: The information communicated in this announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

For immediate release

15 June 2017

MBL Group PLC

("MBL" or the "Company" or the "Group")

Administrators appointed to Windsong International Limited

Proposed Cancellation of Admission of Ordinary Shares to trading on AIM

MBL Group plc (AIM: MUBL) announces that Simon Robert Haskew and Neil Frank Vinnicombe of Begbies Traynor (Central) LLP have been appointed as administrators to the Company's remaining active trading subsidiary, Windsong International Limited ("Windsong")(which makes up the Home Entertainment division) with effect from today, 15 June 2018.

As previously announced, the Company has been looking to dispose of the Home Entertainment division for some time as part of a plan to realise value for shareholders and return capital to them in the short to medium term. Whilst this strategy is still being implemented, it has become clear to the Company's Board that this process would take longer than first envisaged. In addition, a worsening of trading in recent weeks has meant that the Company would need to inject further capital into the Home Entertainment division. Having taken insolvency and legal advice, the Company's Board decided that it was in the best interests of all shareholders to look to appoint administrators to Windsong in order to preserve the Company's cash reserves and not erode them further by providing further support to Windsong.

For the avoidance of doubt, MBL Group PLC will continue to be admitted to trading on AIM as it has sufficient cash resources to meet its current operating requirements.

With effect from the date of the appointment of administrators to Windsong International Limited, MBL Group PLC has become a "Rule 15 Cash Shell" under Rule 15 of the AIM Rules for Companies.

Proposed cancellation of Admission of Ordinary Shares to trading on AIM

The Company has previously announced its intention that, once it had disposed of all the Group's trading businesses, it would seek to return cash to shareholders and to provide for an orderly winding up of the Company. The Board believes that this process would be achieved in the most efficient and cost-effective manner as a private company. Therefore, the Company has today given notice to AIM under AIM Rule 41 that it intends to seek cancellation of its admission to trading on AIM at the earliest opportunity.

Under the AIM Rules, a proposal to cancel the trading of the Company's securities on AIM is conditional on the requisite notice being given to the London Stock Exchange and on the consent being granted in general meeting by Shareholders holding not less than 75 per cent. of the votes cast on the resolution proposed at such general meeting. A circular and Notice of General Meeting will be sent to shareholders shortly to propose this resolution; this would also include the proposed date for cancellation, which will be at least 20 business days after the announcement and posting of the circular and notice convening the General Meeting. In the meantime, the Company's shares will continue to be admitted to trading on AIM.

The Company will issue further announcements as appropriate.

-Ends-

For further information visit www.mblgroup.co.uk

Contact:

 
 Anton Lane 
  James Reynolds    MBL Group plc              01772 440440 
                    SPARK Advisory Partners 
                     Limited (Nominated 
 Mark Brady          Adviser)                  0113 370 8970 
 
 
 

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June 15, 2018 13:02 ET (17:02 GMT)