Deferred Consideration Settlement (9957Z)
March 23 2012 - 11:50AM
UK Regulatory
TIDMMSS
RNS Number : 9957Z
Managed Support Services PLC
23 March 2012
FOR IMMEDIATE RELEASE 23 March 2012
Managed Support Services plc
("MSS" or the "Group")
Deferred consideration settlement
The negotiations with Rentokil Initial plc in respect of the
final deferred consideration receivable by MSS in respect of the
sale of the Group`s Building Services division ("the Division") in
December 2011 have now been concluded. The deadline for agreement
was 5 March 2012, absent which the parties would have appointed an
independent arbitrator.
The Board regarded the process of arbitration as highly
uncertain, whilst also incurring further potentially material cost,
as well as delay.
The additional net proceeds have fallen far short of the Board`s
expectations, primarily as a result of the unforeseen cancellation
of one of the Division`s largest maintenance contracts just prior
to the relevant deadline of 5 March 2012. This cancellation had the
effect of materially reducing by far the most substantial element
of the deferred consideration.
The Board will now make the final outstanding payments to the
secured loan note holders and immediately thereafter will consult
with the Group`s few remaining creditors.
However, in view of the above, the Board regards the equity
value of the company to be negligible. Further announcements will
be made in due course.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Managed Support Services plc:
Simon Beart, Chief Executive 07710 444370
Piers Wilson, Finance Director 020 7280 0953
Cenkos Securities plc:
Stephen Keys, Nicholas Wells 020 7397 8000
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCSEFFIDFESELD
Managed Support Services (LSE:MSS)
Historical Stock Chart
From May 2024 to Jun 2024
Managed Support Services (LSE:MSS)
Historical Stock Chart
From Jun 2023 to Jun 2024
