AFC Energy Regulatory News (AFC)

27 Mar 2006 07:45

Advanced Fluid Connections PLC27 March 2006 Advanced Fluid Connections plc 27 March 2006 Appointment of Administrative Receiver The Board of Advanced Fluid Connections Plc ("the Company"), the fluidconnections and intellectual property group, regrets to announce that theCompany has entered into administrative receivership. Since the trading update announced in November 2005, the Company's PlumbingDivision has continued to experience significant increases in raw materialcosts; its copper prices in particular have risen 20% since that announcementand by 45% since 30 June 2005. The Board has, together with its advisers, explored many strategic alternatives,including refinancing, the negotiation of extended credit arrangements andinjection of additional equity, as well as the sale of certain divisions or theCompany as a whole. Unfortunately, these alternatives have proved impossible to implementsuccessfully within the Company's financial time constraints. Due to the cashposition of the Company, the Board believes the best alternative - for theCompany and all stakeholders - is for the Company to enter administrativereceivership. The Board has been communicating with Endless LLP which is nowexpected to acquire the shares held by the Company in IBP Limited and EuropowerLimited, as well as other assets of the Company from the administrative receiver("The Acquisition"). The board has been told by Endless LLP that: o it intends to make available to IBP Limited, Europower Limited andtheir subsidiaries up to twelve million pounds of additional cash resources,some of which will be used to repay bank debt, and o that all creditors of the Company are to receive a full recovery ofsums due to them and that there is the potential for a distribution toshareholders at a later date, dependant on the performance of The Acquisition. The Company has requested that the London Stock Exchange suspend trading on AIMof the ordinary shares of 0.05p each in the Company. For further information please contact: Bobby Morse / Suzanne Brocks / Elly Williamson Tel: 020 7466 5000 Buchanan Communications This information is provided by RNS The company news service from the London Stock Exchange