Litebulb Group Limited Disposal Update (8302V)
April 20 2016 - 10:57AM
UK Regulatory
TIDMLBB
RNS Number : 8302V
Litebulb Group Limited
20 April 2016
20 April 2016
LITEBULB GROUP LIMITED
("LiteBulb" the "Company" or the "Group")
Corporate Update
LiteBulb (AIM: LBB), the branded product developer, provides an
update on corporate activity relating to its disposal strategy, as
announced on 3 March 2016.
Following the appointment of BDO LLP on 3 March 2016, four
parties, unconnected to the Company, indicated their interest in
acquiring the business of Concept Merchandise Ltd ("Concept").
Three parties moved swiftly to the due diligence phase, which
resulted in a formal offer being received from one of the parties.
However after 3 weeks of further consideration, unfortunately this
offer was withdrawn, leaving the directors will no option but to
place the Concept into administration on 1 April 2016. Following
Concept being put into administration, BDO LLP reverted to those
parties who had previously expressed interest in Concept as a going
concern. However, with the third party warehouse owed circa
GBP150,000 and exercising its lien, interest was limited (including
that of the buyer above) to paying nominal value for stocks.
At this point Woodvale Studios Limited ("Woodvale"), a company
of which Howard Partington and Guy Pettigrew are directors and
minority shareholders, made an offer for the business and assets of
Concept in order to preserve the jobs of the Concept team.
As a consequence of the proposed sale to connected parties, BDO
LLP recommended to Woodvale to refer the proposed transaction to
the Pre-Pack Pool Limited - an independent panel set up to
scrutinise sales conducted to connected parties at the outset of an
Administration. On 14 April 2016, a duly appointed representative
of Pre-Pack Pool Limited reverted to the application of the Buyer
as follows:
"Based on my review, I have not found anything to suggest that
the grounds for the proposed pre-packaged sale outlined in the
application are unreasonable."
On 15 April 2016, the business and assets of Concept Merchandise
Limited (in administration) were sold to Woodvale. Woodvale paid a
net consideration of GBP169,000, which was paid in full upon
completion of the transaction, with no further balance outstanding
or deferred consideration.
Furthermore, given that the debtor book was retained by the
Joint Administrators, with Woodvale entering a collection agency
agreement for the latter as part of the sale of business contract,
it is likely that the resurrection of the business under Woodvale
ownership will produce a significantly enhanced outcome than if the
sale had not taken place and realisations were made piecemeal
without continuity of trade.
The Board cannot give guidance on the timeframe for, or
likelihood of, realisations at this stage although the Directors
believe that there will be no return to shareholders.
For further information, please contact:
LiteBulb Group Limited www.litebulbgroup.com
Howard Partington, Interim Tel: 020 3384 7100
Chief Executive
Guy Pettigrew, Group Finance
Director
This information is provided by RNS
The company news service from the London Stock Exchange
END
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