Luminar Group: Investigating Longer Term Restructuring Options
September 27 2011 - 8:19AM
Dow Jones News
Luminar Group Holdings PLC (LMR.LN), a ownership, development
and operation of nightclubs and themed bars announced Tuesday that
longer term restructuring options continue to be investigated by
Luminar and include discussions with the Banking Group and with
certain shareholders in relation to these options and to a
potential equity fundraising for a restructured Group.
MAIN FACTS:
-As announced on August 25, 2011 Luminar obtained an extension
to the covenant waiver granted in May by its banking group,
comprising Lloyds TSB Bank Plc (LLOY.LN), Barclays Bank Plc
(BARC.LN) and The Royal Bank of Scotland plc (RBS.LN) until 27
October 2011, enabling Luminar to continue discussions with the
Banking Group in respect of a longer term restructuring of the
Group's debt.
-In parallel with these discussions, the company has also
initiated a marketing process in respect of a potential sale of the
Group's underlying business and assets and it has now received
indicative bids in response.
-The bids received to date are at a level which, if accepted,
would not realize any value for ordinary shareholders.
-The Board is continuing to explore both of these options.
-No offer has been received for the company's ordinary shares
and the company is not in discussions with any party regarding an
offer for the company's ordinary shares.
-The Banking Group has indicated that its waiver remains in
place and that it remains supportive of the Group's strategy to
pursue its restructuring options.
-Trading since the announcement on August 25, 2011 has
stabilized.
-Same outlet sales for the three weeks to September 24, 2011
were 6% behind the same period last year.
-In addition trading in our Fuzzy Logic student sessions during
the Freshers period so far has been encouraging.
-Luminar has also recently agreed terms to sell its club in
Newcastle for a net consideration of GBP1.2 million, with
completion scheduled to take place during October 2011.
-Shares at 1146 GMT stood at 2.13 pence.
-By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411;
zechariah.hemans@dowjones.com
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