Business
Restructure Proposals
Restructure Proposals.
About this update from Tern Plc
[{"type":"text","content":"\n The Core Business\n (\"Core\" or the \"Company\")\n\n Details of CVA Proposal and Future Investment Strategy\n\n\n26 February 2010\n\nIn September 2009 the Directors requested the suspension of dealings in the\nExisting Ordinary Shares on AIM when the Directors became aware that trading\nlevels had decreased to a significant extent, as a result of which the Group's\nliabilities exceeded its assets.\n\nProposals\n\nThe Board has considered the position of the Company and of the Creditors and\nShareholders.\n\nThe Board has been approached by Alfred Henry Corporate Finance, together with\nTrafalgar, the Company's largest secured creditor, with proposals under which\nthe Company is to be used as an investing company quoted on AIM and the\nCreditors are to be offered New Ordinary Shares in satisfaction of amounts owed\nto them by the Company in order to eliminate the Company's indebtedness and\nliabilities and provide it with the requisite solvency to conduct a CVA, to\nseek a return to trading on AIM and to fund the associated working capital\nrequirements. The objective would be to enable Creditors and Shareholders to\nrecover some value by holding shares in an AIM quoted investing company.\n\nUnder the CVA, the Creditors will, in aggregate, be offered a total of 126,741\nNew Ordinary Shares, which will be divided among Creditors who make a claim\nwithin three months of the date of the CVA being approved. The New Ordinary\nShares to be held by Creditors will represent approximately 15 per cent of the\nEnlarged Ordinary Share Capital of the Company.\n\nThe Board believes that the restructuring of the capital of the Company (as\ndescribed below), combined with the implementation of the Proposals would\nenable the Company to be re-admitted to AIM with the prospect of being able to\nrealise value for Creditors and Shareholders as a result.\n\nBy implementing the Proposals, there is a prospect that the Ordinary Shares,\nonce returned to trading on AIM, may achieve a value that could provide a\nbetter return than would otherwise be available to Creditors and Shareholders.\n\nSubscription for New Ordinary Shares\n\nThe Company has entered into an agreement with the New Investors under which,\nsubject to implementation of the Proposals, 225,471 New Ordinary Shares will be\nissued to the New Investors at 0.1p per share for a total subsc...