Trading Statement (6223U)
December 23 2011 - 8:16AM
UK Regulatory
TIDMOAH
RNS Number : 6223U
Oak Holdings PLC
23 December 2011
Announcement
23 December 2011
Oak Holdings plc (the "Company")
Trading and strategic update and update on suspension
Oak shares were suspended from trading on AIM on 21 October 2011
as a result of the financial uncertainty caused by the sudden and
unexpected termination by Rotherham Metropolitan Borough Council of
the Company's contract to manage the Rother Valley Country Park
("RVCP") which was Oak's primary source of revenue.
Since then, the Oak Board has reviewed the contract to manage
RVCP and has taken legal advice with a view to ascertaining whether
it may be entitled to compensation from Rotherham Metropolitan
Borough Council in respect of contractual and other matters arising
from the early termination of the contract. The precise amount of
the claim is not yet certain and, accordingly, there is no
certainty as to the outcome.
Oak is currently generating insufficient working capital and has
insufficient available resources to meet its existing and ongoing
liabilities and has therefore sought assistance from third parties.
In November and to date in December, the Company and its
subsidiaries have drawn a series of small secured loans from a
group of lenders led by Yorke & Hartford Limited ("Y&H")
which total GBP36,135. Other lenders include Mr Uday Nayak and
companies associated with him. This lending group has previously
lent the Oak Group a net aggregate of GBP208,606 (excluding accrued
interest) which remains outstanding. On 8 November 2011 Oak
Heritage Limited, which owns a refurbished Hispano Suiza motor
vehicle and one in the course of refurbishment together with a
valuable stock of spare parts, granted an all monies debenture over
its assets and undertaking in favour of Y&H on behalf of the
lending group in respect of certain loans. On 21 November 2011 Oak
granted a similar debenture over its assets and undertaking
(subject to certain previously granted debentures) in favour of
Y&H on behalf of the lending group securing all of the loans.
The loans have interest rates of, generally, 7% per annum or 11%
per annum and have various short maturities and negotiations are
under way to extend these. Further loans may be sought from the
lending group, but there is no commitment by the lending group to
provide any further funds.
Concurrently, the Board is exploring opportunities to stabilise
the Company and to provide the Company with a new strategic
direction including the acquisition of additional business
interests. Two potential such opportunities are currently under
consideration although neither is yet at a sufficiently advanced
stage to provide shareholders with details, nor is there any
certainty that either proposal will proceed. The Board will
continue to seek a basis on which these opportunities can be
progressed.
Whilst the financial position of the Company remains unstable
and its future uncertain, the Company's shares will remain
suspended from trading on AIM. Shareholders will be kept informed
of any further developments.
Enquiries
Oak Holdings plc
Michael Woodcock
Chairman
Tel: 020 7493 5522
Nominated Adviser to Oak Holdings plc
Cairn Financial Advisers LLP
Tony Rawlinson
Tel: 020 7148 7900
This information is provided by RNS
The company news service from the London Stock Exchange
END
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