US Asset Disposal
February 23 2009 - 11:57AM
UK Regulatory
TIDMENN
RNS Number : 7577N
Ennstone PLC
23 February 2009
Ennstone plc
("Ennstone" or the "Group")
US Asset Disposal
On 28 January 2009, trading in Ennstone shares on the London Stock Exchange were
suspended pending clarification of the Group's financial position. At the time
of the suspension the cash position of the Group's wholly-owned US subsidiary,
Ennstone, Inc. was critical, having suspended payments of interest charges and
finance lease repayments to its US lenders. At that time discussions with those
lenders were on-going. No agreement on a way forward has yet been concluded.
On 21 February 2009, the Board of Ennstone plc was informed by the directors of
Ennstone, Inc. that, having taken legal advice, Ennstone, Inc. had completed the
sale of certain assets of Ennstone, Inc. located in Charlottesville and Elkton,
Virginia to fund immediate cash requirements. The sale was completed contrary to
formal, written instruction from Ennstone plc in which the directors of
Ennstone, Inc. had been reminded that significant disposals would require the
approval of Ennstone shareholders under the Listing Rules.
On 20 February 2009, Ennstone, Inc. sold the trade and assets of its ready mixed
concrete businesses located in Charlottesville and Elkton, Virginia, to Wilson
Ready Mix LLC for US$3.1 million in cash (the "Transaction"). Following the
Transaction, Ennstone, Inc. will be required to repay approximately US$0.95
million of outstanding Industrial Revenue Bonds and finance leases over certain
of the Assets. At 31 December 2008, the Assets had a net book value of US$4.6
million and for the financial year ended 31 December 2008, generated a loss of
US$0.55 million. Ennstone, Inc. is understood to be currently negotiating with
its US lenders as to how the proceeds of the Transaction, which will be retained
in the US, will be applied.
A further announcement will be made in due course.
Enquiries:
+------------------------------------+------------------------------------+
| Ennstone plc | 01332 694 444 |
| Julian Cooper/Vaughan McLeod | |
+------------------------------------+------------------------------------+
| | |
| Altium | 0161 831 9133 |
| Adrian Reed | |
| | |
+------------------------------------+------------------------------------+
| College Hill | 0207 457 2020 |
| Mark Garraway | |
+------------------------------------+------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
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