Polo Resources Limited WEATHERLY INTERNATIONAL PLC - INVESTMENT UPDATE (3103W)
July 31 2018 - 4:57AM
UK Regulatory
TIDMPOL
RNS Number : 3103W
Polo Resources Limited
31 July 2018
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
31 July 2018
Polo Resources Limited
("Polo" or the "Company")
WEATHERLY INTERNATIONAL PLC - INVESTMENT UPDATE
Polo Resources Limited (AIM: POL), the multi-sector investment
company with interests in oil, gold, coal, copper, phosphate,
lithium, iron and vanadium, notes that further to an announcement
made by its investee company Weatherly International Plc
("Weatherly") (AIM: WTI) on 1 June 2018, detailing the appointment
of Administrators, the Administrators' Statement of Proposals has
been released by Weatherly and can be found at the following
website:
https://www.fticonsulting-emea.com/cip/weatherly-international-plc
The key conclusions of the Administrators' Statement of
Proposals are set out below:
"Secured creditors
At the date of appointment, the Secured Lenders were owed
approximately $126m by the Group. WTI is a guarantor of this debt.
The Secured Lenders hold security dated 7 May 2015 over the Group.
As a result, the Secured Lenders have security over all of the
Groups assets, which includes fixed and floating charges.
The return to the Secured Lenders is currently uncertain.
Preferential creditors
Under the Act the main classes of preferential creditor are
employees in respect of certain claims in relation to arrears of
wages, holiday and pensions contributions.
The Administrators have paid retained staff their wages to the
date of their redundancy. Consequently, there are not anticipated
to be any arrears of wages claims. However, it is anticipated that
there may be claims in respect of accrued but untaken holiday
pay.
We are currently awaiting confirmation from the RPS of the level
of preferential claims against the Company. We currently envisage
that there will be no funds available to make a distribution to
preferential creditors.
Unsecured creditors
Unsecured creditors rank behind both secured and preferential
creditors. Under Section 176A of the Act where after 15 September
2003 the Company has granted a creditor a floating charge, a
proportion of the net property of the company achieved from
floating charge asset realisations must be made available for the
unsecured creditors ("the Prescribed Part").
There are unlikely to be sufficient funds to repay the Secured
Creditors, therefore returns to unsecured creditors would only
potentially come from the Prescribed Part, up to a maximum of
GBP600k.
We currently have insufficient information to estimate the
likely size of the Prescribed Part and the return to unsecured
creditors, given that calculation is subject to the total level of
floating charge realisations, the costs of realisations and the
cost of paying preferential creditors, all of which remain
uncertain.
However, given the information that we have to date it is
unlikely that there will be a dividend to unsecured creditors.
Shareholders
As it is unlikely that there will be sufficient assets to repay
the Company's creditors in full it is highly unlikely that there
will be any return or distribution to shareholders."
For further information, please contact:
Polo Resources Limited
- Kudzayi Denenga, Investor Relations +27 (0) 787 312 919
Allenby Capital Limited (Nominated
adviser & broker)
- John Depasquale +44 (0)20 3328 5657
Blytheweigh (Public relations)
- Julia Tilley, Simon Woods +44 (0) 207 138 3204
About the Company
Polo Resources Limited is a multi-sector investment company
focused on investing in undervalued companies and projects with
strong fundamentals and attractive growth prospects. For complete
details on Polo, please refer to: www.poloresources.com.
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END
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