SerVision plc Update re suspension (1910I)

TIDMSEV

RNS Number : 1910I

SerVision plc

19 March 2018

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

19 March 2018

SerVision plc

("SerVision" or the "Company")

Update re suspension

Update on the Court hearing in respect of potential administration of SerVision Limited

Further to the announcements on 20 February 2018 and 13 March 2018, the Company confirms that yesterday morning, 18 March 2018, the petition to seek creditor protection in connection with the proposed re-financing of SerVision Limited, the Company's main operating subsidiary which is based in Israel, was filed with the Jerusalem District Court in Israel (the "Court").

The Court hearing took place earlier today and involved the secured creditors of SerVision Limited, being the company's lenders (Bank Leumi, Bank Hapoalim and Bank Mizrahi-Tefahot) and the employees. The court has not yet made a decision regarding the petition as an agreement could not be reached as to who would act as trustee to oversee the Court process. As such the Court has adjourned for a second hearing on 22 March 2018, to allow the relevant parties, being the potential investor Ronnie Cohen and the State Liquidator, to reach an agreement as to who will act as trustee.

If such an agreement is achieved and filed with the Court, a decision may be brought forward before the second hearing is due. If no agreement can be reached, then it is expected that SerVision Limited will be placed into immediate liquidation. Even if such an agreement is reached, there is no guarantee that the Court will approve the petition.

The Directors of the Company continue to be of the view that not much value, if any, will be returned from its debts and shareholding in SerVision Limited.

At this stage the Board continues to seek to clarify the Company's financial position and seek a solution for the benefit of creditors and shareholders and the Company is working closely with its advisers (including an insolvency practitioner) in this regard.

The Company's ordinary shares remain suspended from trading on AIM.

Further updates will be provided by the Company at the appropriate time.

-ends-

For further information:

 
SerVision plc 
Eitan Yanuv (Finance Director)                         [phone] 
 Antony Legge (Non-Executive Director)                  5656 
Allenby Capital Limited (Nominated                     [phone] 
 Adviser and Broker)                                             5656 
Nick Athanas / John Depasquale 
 
 
Leander PR (Financial PR) 
                             [phone] 
Christian Taylor-Wilkinson               157 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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March 19, 2018 11:52 ET (15:52 GMT)