LONDON (Alliance News) - Hightex Group PLC Wednesday said the German court that has been overseeing the insolvency process for its German operating subsidiary has now approved the sale of that business, bringing the so-called 'Eigenverwaltung' process to an end.
Hightex said the disposal constitutes a fundamental change of business under AIM Rules and it will make further announcements in due course. The move effectively means Hightex is now treated as an investing company under AIM rules because it no longer has a trading business.
Hightex won't get any money for the disposal of German subsidiary Hightex GmbH, but the creditors of that business will get a "secured quota of 3%" which is expected to be paid in June.
In March, the engineer of light membrane roofs said it had started insolvency proceedings after it revealed it will get no money from the sale of its German operating business out of bankruptcy.
The company's Hightex GmbH operating business went into the self-administered creditors' plan after accusing its joint venture partner in Brazil of misappropriation of EUR3.3 million of funds. The venture partners had been working together on two 2014 World Cup stadia. The business also was hit by its failure to win any further stadium contracts, notably for the 2018 World Cup that's being held in Russia.
Hightex shares were suspended in February as developments concerning its operating subsidiary continued.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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