UPDATE: SerVision Receives "Expression Of Interest" For Core Unit

LONDON (Alliance News) - SerVision PLC late Monday said it has received an expression of interest from a third party to acquire the company's main operating unit SerVision Ltd.

The company added that it has subsequently petitioned the Jerusalem District Court in Israel to rescind the freeze order and allow the company to pursue the possible disposal of SerVision Ltd as it represents a better outcome for creditors.

Earlier on Monday, SerVision said it has submitted a petition to seek creditor protection in Israel for SerVision Ltd to the Jerusalem District Court.

The court did not make an immediate decision on whether to grant protection as an agreement could not be reached on who would act as trustee in the Court process, SerVision said. As such the hearing has been adjourned until Thursday.

If an agreement cannot be reached then SerVision Ltd will be put into liquidation immediately, and there is no guarantee protection will be granted if an agreement can be reached.

SerVision said Tuesday last week it would be petitioning the Court in Israel to insulate its subsidiary in the country from creditors.

Shares in SerVision PLC were suspended from trading in February as it evaluated its options after failing to secure funding.

The digital security systems firm had said in February it needed to raise further funds in the near term, and that it intended to do this without having to resort to funding through the conversion of existing debt to equity.

The focus has since, it said, been to re-finance SerVision Ltd which also owns 100% of US subsidiary SerVision Inc.

Whilst under protection, the Court would effectively control SerVision Ltd, and the best outcome could include a sale of the business. SerVision said it doubts it would get much value, if any, from a sale of the business.

Ultimately, SerVision said, its operating subsidiary in the UK is also likely to be sold, meaning it would become a cash shell under AIM market rules.

SerVision also said it is in discussions with possible investors for new equity funding. This would require shareholder approval and would be conditional on the sale of SerVision Ltd, and an "acceptable" deal with SerVision's creditors.

Shares remained suspended from trading on Monday.