Business
Rescission of Purchase Agreem
Rescission of Purchase Agreem.
About this update from Audioboom Group Plc
[{"type":"text","content":"\n RNS Number : 4308X Off-Plan Fund Limited (The) 14 August 2009 \n \n\n\n\n\nFor Immediate Release\n\n\n14 August 2009\n\n\n\n\n\n \nTHE OFF-PLAN FUND LIMITED\n(the 'Company' or 'Fund')\n\nRescission of Purchase Agreements in respect of Canon House, Wallington\n\n\nIn the interim results for the six months ended 31 March 2009, announced on 30 June 2009, the Fund stated that it had been given notice that the lending bank, Bank of Scotland Plc, had appointed a receiver under the Law of Property Act 1925 in respect of the bank’s charge over Henry Homes (Wallington) Limited’s ('HHW') leasehold interest in the site at Canon House, Wallington. Owing to the fact that this constitutes an insolvency event of default under each of the purchase agreements entered into between the Fund and HHW in respect of the 118 residential units which were to comprise part of the proposed Canon House development in Wallington (the “Agreements”), the Fund has exercised its right to rescind each of the Agreements.\n\nThis rescission entitles the Fund to have the deposits it paid under the terms of the Agreements, amounting to £1.1 million in aggregate (the 'Deposits'), repaid by HHW and releases the Fund from any further obligations in respect of the scheme.\n\nIn accordance with its contractual rights, the Fund is entitled to and will seek to secure the return of the Deposits as soon as is practicable. Should HHW fail to repay the Deposits within 7 days the Fund may elect to petition for HHW to be wound-up and thereby ultimately trigger the repayment of any outstanding amount by Zurich Insurance Company (trading as Zurich Municipal) which has guaranteed the return of the Deposits to the Fund in the event of such a winding-up.\n\nThe Fund will also, in accordance with its contractual rights, seek to secure the return of the sum of £3 million held by AIB Bank (CI) Limited ('AIB') as collateral for a completion guarantee provided by AIB to HHW's lending bank in respect of the Fund's obligations under the Agreements, now rescinded.\n\nThis pr...