Fairpoint Group plc: Notice of intention to appoint Administrators
August 04 2017 - 1:01AM
UK Regulatory
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release.
Fairpoint Group plc (FRP)
Fairpoint Group plc: Notice of intention to appoint Administrators
04-Aug-2017 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
4 August 2017
For immediate release
Fairpoint Group PLC
("Fairpoint" or the "Group")
Notice of intention to appoint Administrators
On 3 July 2017 Fairpoint announced that AIB Group (UK) plc ("AIB") had
assigned its debt due from Fairpoint to Doorway Capital Limited ("Doorway")
and that, in conjunction with the assignment of debt, Doorway had provided a
Receivables Funding Facility (the "Facility") of up to GBP5 million to Simpson
Millar LLP ("Simpson Millar"), the Group's wholly owned Legal Services
business.
The Board believe that this new Facility provided by Doorway will enable
Simpson Millar and its subsidiaries (the "Legal Businesses") to continue to
trade as going concerns and take advantage of the growth opportunity
presented by the size and highly fragmented nature of the consumer legal
services market-place.
However, ongoing support for the Group's subsidiaries outside of the Legal
Businesses is made more difficult due to the existence of the onerous lease
on the Group's head office which has an annual commitment of cGBP1m per annum
for a further 4 years. As a result, and following detailed discussions and
the evaluation of a number of options, the Board has concluded that the
holding company of the Group, Fairpoint Group plc, is no longer able to
continue trading as a going concern and has filed notice of intention to
appoint administrators.
Unless financial circumstances change, and in accordance with statutory
requirements, the Board intend to appoint administrators within 10 business
days. The secured creditor can, however, appoint administrators without the
requirement for notice.
The Board do not expect this announcement to have a material impact on the
planned disposal of the IVA and Claims divisions to a third party, as
previously announced on 12 July 2017.
A further announcement will be made in due course.
For enquiries please contact:
Fairpoint Group plc
David Broadbent, Chief Executive Officer 0344 826 1209
Shore Capital (Nominated advisor and broker)
Mark Percy 020 7408 4090
Edward Mansfield
MHP Communications fairpoint@mhpc.com
Reg Hoare 020 3128 8794
Katie Hunt
Language: English
ISIN: GB0032360280
Category Code: MSCH
TIDM: FRP
Sequence No.: 4498
End of Announcement EQS News Service
598753 04-Aug-2017
(END) Dow Jones Newswires
August 04, 2017 02:01 ET (06:01 GMT)
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