info for help25 Aug 2011 00:08
Asset Co (ASTO) took the undesirable moniker of AIM's fifth-worst performer over the past six months, with a 64.58% drop in share price.
After announcing towards the end of last year that it had concluded its asset disposal programme in a bid to restructure its balance sheet, by February it had hit a stumbling block after it announced that negotiations to restructure its financing had proved more laborious than expected and led to a significant strain on its cash resources.
As a result, the company was forced to go to investors cap in hand to raise £16 million after several creditors petitioned for the company to be wound up.
While it enjoyed a slight respite in March when it revealed it had received a preliminary approach from a third party, it proved a short-lived burst for AssetCo which admitted later than month that the £16 million fundraising was still not sufficient to meet its needs.
In a further blow to the company, chief executive John Shannon announced he would vote against the working capital resolutions, forcing it to suspend trading while it awaited an injunction requiring Shannon to vote in favour of all the resolutions.
Within a matter of days, Shannon was dismissed and became embroiled in a dispute with the new management team, calling for the company to be wound up.
In May, AssetCo said it had identified £7.9 million of "counterclaims" against him, stemming from alleged breaches of his "fiduciary duties".
Since then, suitors have been eagerly eyeing up the embattled company, with AssetCo confirming in mid-June that it was in talks with a number of parties. Names such as US marine and aviation services provider Seacor Holdings and Manchester-based Consilla have been bandied around.
Since period end, it has emerged that the company is in advanced talks with Bahraini investment group Arcapita over a rescue deal
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