Non-Standard Finance PLC Replacement: Update on scheme of arrangement (9561X)
April 28 2023 - 11:51AM
UK Regulatory
TIDMNSF
RNS Number : 9561X
Non-Standard Finance PLC
28 April 2023
The following amendment has been made to the 'Update on scheme
of arrangement' announcement released 28 April 2023 at 15:33pm
under RNS No 9348X.
The following phrase 'the Scheme is not sanctioned by the Court,
or...' has been deleted from the penultimate paragraph.
All other details remain unchanged.
The full amended text is shown below.
Non-Standard Finance plc
('Non-Standard Finance', 'NSF' or the 'Company')
Update on scheme of arrangement ('Scheme')
(28 April 2023): Further to its announcement dated 17 March 2023
regarding the launch of the Scheme and Proposed Recapitalisation
(the "17 March RNS"), Non-Standard Finance announces that the
convening hearing in relation to the Scheme was held earlier today,
at which the Court granted an order that Everyday Lending Limited
("ELL") can convene a meeting of the Scheme Creditors to consider
and vote on the Scheme.
The creditors' meeting is currently scheduled to be held on 12
June 2023. If Scheme Creditors approve the Scheme, the Court
sanction hearing is expected to be held on 22 June 2023. Once
sanctioned, the effectiveness of the Scheme will then be
conditional upon the Scheme Fund being funded through the proceeds
of the Proposed Recapitalisation or, if the conditions to the
Proposed Recapitalisation are not satisfied, the Alternative
Transaction. Under the Scheme, based on the Group's current
calculations, Scheme Creditors are now estimated to receive between
24% and 31% recovery.
The FCA's current views in relation to the Scheme are set out in
a letter it sent the Company on 25 April 2023. The FCA's stated
position is that it does not, at this stage, anticipate that it
will oppose the Scheme from being sanctioned should the requisite
majorities of Scheme Creditors vote in favour of the Scheme. The
FCA does, however, fully reserve its position in respect of the
Scheme and its right to object to the Scheme in due course, if the
FCA considers it appropriate to do so.
The Group reminds shareholders that in the event the Scheme is
sanctioned and the Proposed Recapitalisation takes place, although
the Proposed Recapitalisation will ensure the future of the Group
and the Everyday Loans business, it will materially dilute the
interests of NSF's existing shareholders, most likely to negligible
value, unless they choose to participate in the equity raise.
The Group also reminds shareholders that in the event that the
Scheme is sanctioned but the Proposed Recapitalisation is
unsuccessful, then the Alternative Transaction will be pursued
involving a transfer of the ownership of the Group's business to
the Group's secured lenders in exchange for the release of a
portion of their secured debt and the provision of a new lending
facility, resulting in no return for current shareholders. In the
event that the Scheme is not sanctioned by the Court, or the Scheme
is sanctioned but the Proposed Recapitalisation and Alternative
Transaction both fail, then the Group would remain insolvent and
the most likely outcome would be a Group-wide insolvency (most
likely administration), also resulting in no return for current
shareholders.
Unless otherwise defined, capitalised terms within this
announcement shall have the same meaning as those contained within
the 17 March RNS.
For more information:
Non-Standard Finance plc
Jono Gillespie, Group Chief Executive Officer
Sarah Day, Chief ESG Officer and Company
Secretary +44 203 869 9020
Cenkos Securities plc
Nicholas Wells
Ben Jeynes
Callum Davidson +44 207 397 8900
H/Advisors Maitland +44 207 379 5151
Neil Bennett +44 7900 000777
Finlay Donaldson +44 7341 788066
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END
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