Email Andrew Clotworthy14 May 2013 08:42
Dear Andrew,
This was posted up on a Hibu Bulletin Board last night; please could you confirm that you are indeed head of Investor relations at Hibu, and that the contents of email are factual.
I must stress that because of the sensitive nature of the email below, Lawyers on behalf of an action group will use contents of communication in their dialogue!
Email:
I was a substantial shareholder in Hibu with an average price of 3p and was optimistic that there may be some value left for shareholders.
After receiving an email today from Hibu I had a lengthy chat with Andrew Clotworthy (Head of Investor Relations).
Here is an overview of the content of those discussions:
• Hibu are still negotiating with lenders are in the process of agreeing a term sheet, this is likely to be concluded within the next few weeks , however, may take longer as they have missed a number of key dates.
• Hibu have defaulted on their loans and the lenders are in a position to call in these loans at any time.
• As Hibu have defaulted the lenders now have a very strong position and have been very aggressive in negotiations. The lenders want to take 100% control of Hibu and the board have had to agree to everything the banks have demanded thus far as they are at the mercy of the lenders.
• There are still a number of options available, however, he believes that the most likely outcome is that the lenders will receive 100% of Hibu and the shareholders will receive nothing. He also confirmed that he has been present at the meetings and negotiations with the lenders and has witnessed the aggressive negotiating by the lenders.
In my opinion, as he was being very diplomatic, he was basically telling me that there will be no value left for shareholders and that is the very reason the RNS the company has been telling us for some time.
After the meeting I have sold my entire holdings in Hibu 2.9m at a substantial loss but at least I still have something to show as I believe in a few weeks this will be worthless.
I you have time I would advise calling Investor Relations and asking for a chat with him and then getting out this share or risk losing what you still have.
End
Yours thoughts on the above will be greatly appreciated.
Best regards
Shareholder, Hibu