Snoozebox Holdings PLC Intention to Appoint Administrators (9145V)
November 08 2017 - 6:00AM
UK Regulatory
TIDMZZZ
RNS Number : 9145V
Snoozebox Holdings PLC
08 November 2017
8 November 2017
Snoozebox Holdings plc
Business update, update on discussions with lender, intention to
appoint administrators and suspension of trading on AIM
The Board of Snoozebox Holdings plc (the "Company") (AIM: ZZZ),
the provider of rapidly deployed quality serviced accommodation,
announces an update to the Company's business activities and an
update on discussions with its lender.
Business update
The Directors have made significant progress toward improving
the trading prospects and viability of the Company since adopting a
new strategy in mid-2016. Most recently, on 24 August 2017, the
Company announced a significant contract win and the Directors
believe the Company retains a good pipeline of potential new
business for delivery going into 2018. The Company has made good
progress toward achieving operating cash flow breakeven, through a
combination of revenue increases and cost reductions.
Update on discussions with lender
As previously announced, the Company has been in discussion with
its primary lender, SQN Asset Finance Income Fund Limited ("SQN"),
concerning its debt repayment obligations and the longer-term
capital structure of the Company. Achieving a successful outcome to
these discussions has been fundamental to the continuance of the
Company as a going concern for some time.
Despite constructive discussions and a number of proposals being
made, it is now the Directors' view that the Company and SQN will
be unable to agree a suitable debt servicing plan or longer-term
capital structure for the Company and without SQN's support the
Directors have concluded that the Company is unable to continue as
a going concern. The Company's main trading subsidiary Snoozebox
Limited (the "Subsidiary") would, in the absence of support from
SQN, be unable to pay its liabilities as they fall due. The
Company, by virtue of its guarantee of the Subsidiary's debt
service obligations, would then in turn also be unable to pay its
liabilities as they fall due.
Intention to appoint administrators
The Directors have concluded that in the circumstances it is in
the best interests of stakeholders as a whole that the Company and
Subsidiary be placed into administration. Accordingly, the
Directors intend to appoint administrators and expect such
appointment to be made shortly, such appointment to be confirmed by
a separate announcement at the respective time. It is expected that
the appointment of administrators would cause equity holders to
receive little-to-nil value.
The significant debt burden taken on by the Company in 2014 has
been one of the Company's largest challenges given the poor
financial and operational position of the Company when the
Directors commenced restructuring in early 2016. It is a challenge
that the Directors have sought to manage whilst aligning the
Company to a new strategy and being as transparent as possible with
shareholders. However, the Company has succumbed to the challenge.
Given the significant progress the Company has made with delivery
of its new strategy since mid-2016, this outcome is clearly very
disappointing for shareholders.
Suspension of trading on AIM
Pending resolution of the Company's intention to appoint
administrators and further clarification of its financial
circumstances, the Company has applied for suspension of trading in
the Company's ordinary shares on AIM with immediate effect.
The Company will make further announcements in due course.
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014.
Enquiries:
Panmure Gordon 020 7886 2500
Corporate Finance:
Andrew Godber
Duncan Monteith
Corporate Broking:
Charles Leigh-Pemberton
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLLFSILELTIID
(END) Dow Jones Newswires
November 08, 2017 06:00 ET (11:00 GMT)
Snoozebox (LSE:ZZZ)
Historical Stock Chart
From Sep 2024 to Oct 2024
Snoozebox (LSE:ZZZ)
Historical Stock Chart
From Oct 2023 to Oct 2024