Concha plc Further update on Investment in Ve Interactive (1164E)
May 04 2017 - 2:00AM
UK Regulatory
TIDMCHA
RNS Number : 1164E
Concha plc
04 May 2017
Concha PLC
For immediate release
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
Further update on Investment in Ve Interactive Limited
In March of this year, we reported that a new management
consortium had been introduced to Ve Interactive Limited ("Ve")
with the primary objectives of stabilising the business and
executing a programme of solvent restructure. At this time, the
on-going viability of the business was dependent upon the new
management consortium securing the necessary funding to
recapitalise its balance sheet and re-structure a number of onerous
debt obligations entered in to by the former founding management
team.
On 15 March, management communicated their intention to secure a
minimum of GBP20m in new funding, from a combination of both
existing share and debt holders together with new identified
parties. On 7 April 2017, HMRC served a second winding up petition
on the Company, the first having been satisfied by the injection of
funds introduced to the business by the new management consortium a
month earlier. Throughout this time, the new management team
continued to actively engage with the existing share and debt
holder base in order to provide greater insight in to their future
plans for Ve, and assist the diligence process of all interested
parties wishing to evaluate the proposed new funding arrangements.
By the time of the second winding up petition, the management had
secured a maximum of GBP13.1m in conditional new funding.
As a result of this action, the timetable afforded the new
management team in concluding its fundraising was accelerated and
in the absence of having secured the necessary funding required to
meet the short term needs of the business going forward, Smith and
Williamson were formally engaged by Ve on 13 April 2017 in
preparation for an insolvency appointment over Ve.
On 24 April 2017, an application to the Leeds District Registry
of the High Court, to be heard the following day, was made by a
creditor seeking to place Ve into Administration. On 25 April 2017,
Smith and Williamson were appointed as administrators to the
company. Later that same day, as part of a pre-packaged
arrangement, the business and assets of Ve were sold to Rowchester
Limited for a cash consideration of GBP2m, payable in instalments
over a 12 month period ending April 2018. The directors of
Rowchester Limited comprise members of the incoming Ve management
consortium.
The Board of Concha is deeply disappointed by the recent events
and circumstances of the last few months, particularly the actions
of both the founder management team and their advisors. We together
with other former shareholders in Ve, which in combination have
advanced more than GBP50m in equity funding since the company began
trading in 2009, will continue to investigate the actions of those
responsible for its demise and indeed any opportunity to
participate in the assets and business of Ve going forward, however
at this time there can be no guarantees of any such
involvement.
The impact of these recent events has eliminated any residual
carrying value in Concha's former investment in Ve. In the event
that this situation changes and Concha is either able to secure a
participation in the new business going forward or recover value
from its former investment it will communicate details at the
appropriate time. In the meantime, your Board will continue to
review new investment opportunities in order to restore value for
its shareholder base.
For further information, please contact:
Concha PLC
Chris Akers, Chairman Chris.akers@srgplc.com
SPARK Advisory Partners
Limited (Nominated Adviser)
Sean Wyndham-Quin/Mark
Brady +44 (0)20 3368 3550
This information is provided by RNS
The company news service from the London Stock Exchange
END
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