Orchid Developments Group Ltd Update re financial position (1242K)
August 16 2012 - 2:00AM
UK Regulatory
TIDMOCH
RNS Number : 1242K
Orchid Developments Group Ltd
16 August 2012
16 August 2012
Orchid Developments Group Ltd.
("Orchid" or the "Group")
Update re financial position
The economic environment in which the Group is operating remains
extremely difficult. The quantum of free cash flow, which may be
generated in the short to medium term including from the sales of
apartments and other assets, remains difficult to predict and
unclear. In addition, the margin of forecast available cash over
requirements, as stated on 3 July 2012, remains modest.
Most recently, the sale of an asset which the Group's board had
anticipated did not proceed as planned for reasons beyond the
control of the Group. In addition, the Group cannot be certain that
it can continue to operate with the full support of its creditors.
The consequences of these factors mean that the cash position of
the Company is more uncertain than forecast at the time of the
announcement made on 3 July 2012.
As a result, the Directors believe that the Group is likely not
to be able to operate as planned, unless additional capital is
raised. Consequently, the Board is considering the best manner in
which to address its immediate working capital needs. A further
announcement will be made in due course.
Guy Meyohas, Chief Executive Officer of Orchid, said:
"The Board remains focused on resolving its financing needs.
Additional capital will not only strengthen the Group's balance
sheet but also will undoubtedly strengthen the position of the
Group in negotiating the disposal of its assets in order to deliver
shareholder value."
Ends
Contacts:
Orchid Developments www.orchid-dev.com
Guy Meyohas +41 798 200 200
Shore Capital and Corporate Limited
Bidhi Bhoma / Toby Gibbs +44 20 7408 4090
MHP Communications
Reg Hoare / Tim McCall / Vicky
Watkins +44 20 3128 8100
Notes to Editors:
Orchid Developments Group Ltd (OCH.L), which listed on the AIM
market in June 2005, was established with the aim of generating
value for shareholders by investing in real estate and leisure
business opportunities initially in Bulgaria.
The company is active in all principal sub-sectors of the
Bulgarian real estate and leisure markets and currently holds three
residential and six commercial property developments in Sofia and
Varna. Its principal investment is Grand Mall Varna, one of
Bulgaria's leading shopping malls.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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