Hibu legal team threaten investors24 Oct 2013 20:02
HIBU SHAREHOLDERS GROUP
PRESS RELEASE
24/10/13 for Immediate Release
HERBERT SMITH FREEHILLS THREATEN HSG BOARD CANDIDATES
Herbert Smith Freehills, “magic circle” solicitors, acting for hibu plc and its present board of directors have written a 9 page letter to the 10 candidates for office as director of hibu plc supported by over 5% of the voting shares telling them, inter alia, that they should “not underestimate the adverse reaction which you will face” if there is not a “successful restructuring” of the insolvent hibu group.
They also complain that one of the candidates, a solicitor acting for a group of shareholders, cannot continue to give them independent legal advice nor can his firm do so either.
The insolvent hibu group will take “all legal and regulatory action necessary” say Herbert Smith Freehills.
Barry Dearing, the solicitor concerned, said “I find this letter to be most disturbing. I am not accustomed to threats from solicitors of the nature of that given by Herbert Smith Freehills particularly when they did not say who had instructed them to write the letter.”
They have now clarified that it was hibu plc but have not specified who the creditors concerned are nor the nature of the adverse reaction.
Mr Dearing said “I do not know who the creditors are. Some say they are Vulture Funds so I have no idea whether I am to expect a knock on the door from some American Mafioso or an East End gang.”
The letter spells out in great detail the risks which accompany being a director of an insolvent company and the necessity of there not being any conflict of interest.
Mr Dearing said: “This is no surprise to me but it does call into question the part played by Chairman Wigley who is both a shareholder and holder of hibu debt as far as public announcements go. The first business for the EGM is asking for an explanation of his holding of shares and debt and why the 2012 Annual Report is in conflict with previous announcements”.
Shareholders have previously asked themselves which hat Chairman Wigley has been wearing in negotiations with creditors: his shareholders hat, his director’s hat or his creditor’s hat?
A spokesman for Hibu Shareholders Grouping Limited, which has coordinated the successful requests for a General Meeting, said: “This letter makes me think that they are running scared and are afraid that shareholders might actually have a say in events when the directors and creditors want to keep them out of it. I hope that other shareholders learn about the EGM and vote for shareholder information.”
ABOUT HIBU SHAREHOLDERS GROUPING LTD: a formation of shareholders in hibu plc mainly private investors who have requested that a general meeting of hibu plc be called by the directors to address shareholders concerns. For further information see: www.hibu-shareholders-group.com
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